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

question 289

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

• A) 2 numerator degrees of freedom and 15 denominator degrees of freedom
• B) 15 numerator degrees of freedom and 2 denominator degrees of freedom
• C) 2 numerator degrees of freedom and 17 denominator degrees of freedom
• D) 17 numerator degrees of freedom and 2 denominator degrees of freedom

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