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

question 88

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 value of the partial F test statistic for H₀: β₃ = β₄ = 0 vs. H₁: At least one βⱼ ≠ 0, j = 3, 4?

• A) 0.820
• B) 1.219
• C) 1.382
• D) 15.787

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