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

question 208

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, what can we say about Model 1?

• A) The model explains 77.7% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 75.1% of the sample variability of heating costs.
• B) The model explains 75.1% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 77.7% of the sample variability of heating costs.
• C) The model explains 80.8% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 75.7% of the sample variability of heating costs.
• D) The model explains 75.7% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 80.8% of the sample variability of heating costs.

Comprehend the impact of time and interest rates on the net present value of future sums of money.

Grasp the relationship between saving and investment in an economy.

Understand how interest can exist without a formal currency in a barter economy.

Recognize the differences between investing in physical capital and human capital.

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Definitions:

Physically

Pertaining to the body as opposed to the mind or emotions, involving bodily movements or activities.

Emotionally Healthier

Being in a state where one has good emotional health, characterized by the ability to manage emotions, cope with life's challenges, and maintain positive relationships.

Social Support

The perception or reality of having assistance available from other people, and the actual aid received from them, which can significantly affect an individual's stress levels and mental health.

Spirituality

An individual's sense of peace, purpose, and connection to others, and beliefs about the meaning of life.