SCENARIO 14-6 One of the Most Common Questions of Prospective House Buyers

question 12

Multiple Choice

SCENARIO 14-6
One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y) . To provide its customers with information on that matter, a large real estate firm used the following 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( X₁ ) and the amount of insulation in inches ( X ₂ ) . Given below is EXCEL output of the regression model.



Also SSR (X₁ | X₂) = 8343.3572 and SSR (X₂ | X₁) = 4199.2672
-Referring to Scenario 14-6,what can we say about the regression model?

• A)The model explains 17.12% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
• B)The model explains 19.28% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
• C)The model explains 27.78% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 19.28% of the sample variability of heating costs.
• D)The model explains 19.28% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 17.12% of the sample variability of heating costs.

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Definitions:

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The value of finished goods and services produced within a country’s borders.

Skills Shortage

A difficulty finding people with the right skills to fill vacant positions.

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The department within an organization that deals with recruitment, management, and development of its employees.

Human Capital

The collective skills, knowledge, and expertise that individuals possess, which can be utilized to create economic value.