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

question 101

Multiple Choice

TABLE 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 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X₁) the amount of insulation in inches (X₂) , the number of windows in the house (X₃) , and the age of the furnace in years (X₄) . Given below are the Excel outputs of two regression models.
Model 1

Model 2

-Referring to Table 14-6, the estimated value of the partial regression parameter β₁ in Model 1 means that

• A) holding the effect of the other independent variables constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside temperature by 4.51 degrees.
• B) holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $4.51.
• C) holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $4.51.
• D) holding the effect of the other independent variables constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by 4.51%.

Understand the concept of age cohorts and their relevance in market segmentation.

Identify the unique characteristics and marketing considerations for each major age cohort including baby boomers, seniors, and teens.

Design and evaluate scales and measures relevant to consumer behavior studies.

Explain the dynamics of teen conflicts and how they can influence market strategies.

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Definitions:

Piaget's Theory

A comprehensive theory of cognitive development proposed by Jean Piaget, which outlines how children progress through distinct stages of intellectual growth.

Intellectual Development

The growth and change in an individual’s cognitive abilities and capacities throughout the lifespan, including thinking, problem-solving, and decision-making skills.

Understandings

The comprehension or grasp of knowledge about a particular subject, issue, or situation.

Discriminate

The act of making distinctions between people or things based on class, race, gender, etc., often leading to unfair treatment.