The Following Summary Is from Home Heating Costs, Using Mean

question 11

Multiple Choice

The following summary is from home heating costs, using mean outside temperature as X1 the
Number of centimetres of insulation as X2, and the presence of a garage as X3.
Is the presence of the independent variable garage significant in predicting heating costs, when
Tested at the 0.01 level of significance?

• A) Since the p-value is less than the level of significance, the null hypothesis is rejected, and so the garage should be included in the analysis.
• B) Since the p-value is less than the level of significance, the null hypothesis is accepted, and so the garage should not be included in the analysis.
• C) Since the p-value is more than the level of significance, the null hypothesis is accepted, and so the garage should not be included in the analysis.
• D) Since the p-value is more than the level of significance, the null hypothesis is rejected, and so the garage should be included in the analysis.

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Definitions:

Tactical

Pertaining to actions or strategies carefully planned to achieve a specific end, typically in the military or in business contexts.

Strategic

Refers to a high-level plan or approach designed to achieve long-term or overall goals.

Biased Forecast

A forecast that consistently tends to overestimate or underestimate the actual value due to systematic errors.

Naive Approach

A forecasting technique that assumes that demand in the next period is equal to demand in the most recent period.