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

question 93

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 is the 90% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature using Model 1?

• A) [-6.58, -3.65]
• B) [-6.24, -2.78]
• C) [-5.94, -3.08]
• D) [-2.37, 15.12]

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Definitions:

Outsource

The practice of hiring third-party vendors to perform services or produce goods that were previously done in-house, often to reduce costs or access specialized skills.

Low Bidder

In procurement, it refers to the entity that offers the lowest price to supply goods or services in a competitive bidding process.

Expensive Bidder

A term that does not correspond to a specific widely recognized concept in business or economics, thus NO.