Needing a Simple Cost Estimator for Commercial Construction Costs in the City

question 100

Multiple Choice

Needing a simple cost estimator for commercial construction costs in the city, you hope to find a useful linear relationship between cost (y) and floor space (x) .You have data from a sample of four recently completed building projects: The estimated regression equation turns out to be y = 24 + 1.6x and s_b= 1.13.Construct an appropriate hypothesis test to determine whether we can use the sample data here to reject a β = 0 null hypothesis at the 5% significance level.Report your conclusion.

• A)Since t_stat is outside the critical values of ±3.182, we can reject the β=0 null hypothesis.
• B)Since t_stat is outside the critical values of ±4.362, we can reject the β=0 null hypothesis.
• C)Since t_stat is not outside the critical values of ±4.303, we can't reject the β=0 null hypothesis.
• D)Since t_stat is not outside the critical values of ±2.182, we can't reject the β=0 null hypothesis.

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Definitions:

Analytic Cognitive Style

A style of thinking characterized by a logical, detail-oriented, and systematic approach to problem-solving and decision-making.

Mental Shortcuts

Heuristic techniques used by individuals to simplify decision-making processes, though they may not always lead to accurate judgments.

Step-by-Step Procedures

Detailed, sequential instructions designed to guide someone through the completion of a task or process.

Incubation Effect

A phenomenon in problem-solving where a solution or creative insight comes to mind after taking a break from focused work on the problem.