SCENARIO 14-6 One of the Most Common Questions of Prospective

question 275

Multiple Choice

SCENARIO 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 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit and the amount of insulation in inches Given below is EXCEL output of the regression model.
-Referring to Scenario 14-6, what is your decision and conclusion for the test level of significance?

• A)Do not reject H₀ and conclude that the amount of insulation has a linear effect on heating costs.
• B)Reject H₀ and conclude that the amount of insulation does not have a linear effect on heating costs.
• C)Reject H₀ and conclude that the amount of insulation has a linear effect on heating costs.
• D)Do not reject H₀ and conclude that the amount of insulation does not have a linear effect on heating costs.

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