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

question 208

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 ( X₁ ) and the amount of insulation in inches ( X ₂ ) . Given below is EXCEL output of the regression model.



Also SSR (X₁ | X₂) = 8343.3572 and SSR (X₂ | X₁) = 4199.2672
-Referring to Scenario 14-5,what are the predicted sales (in millions of dollars) for a company spending $100 million on capital and $100 million on wages?

• A)15,800.00
• B)16,520.07
• C)17,277.49
• D)20,455.98

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Definitions:

Identical Skill Levels

Refers to a situation where individuals or entities have the same level of expertise or competence in a specific domain.

Wage Rate

The fixed amount of compensation or payment received by an employee for employment services, typically expressed per hour or year.

Intense Heat

Extremely high temperatures that can impact environments, health, and activities.

Millionaires

Individuals whose net worth or wealth equals or exceeds one million units of currency.