SCENARIO 18-2 One of the Most Common Questions of Prospective

question 256

Multiple Choice

SCENARIO 18-2 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 ( ) , the amount of insulation in inches ( ) , the number of windows in the house ( ) , and the age of the furnace in years ( ) .Given below are the EXCEL outputs of two regression models.
-Referring to Scenario 18-2, what is your decision and conclusion for the test level of significance using Model 1?

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

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