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

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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 ( X1 ) , the amount of insulation in inches ( X 2 ) , the number of windows in the house ( X3 ) , and the age of the furnace in years ( X 4 ) . Given below are the EXCEL outputs of two regression models.
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 ( X<sub>1</sub> ) , the amount of insulation in inches ( X <sub>2</sub> ) , the number of windows in the house ( X<sub>3</sub> ) , and the age of the furnace in years ( X <sub>4</sub> ) . Given below are the EXCEL outputs of two regression models.     -Referring to Scenario 18-1,which of the following values for the level of significance is the smallest for which every explanatory variable is significant individually? A) 0.01 B) 0.025 C) 0.05 D) 0.15
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 ( X<sub>1</sub> ) , the amount of insulation in inches ( X <sub>2</sub> ) , the number of windows in the house ( X<sub>3</sub> ) , and the age of the furnace in years ( X <sub>4</sub> ) . Given below are the EXCEL outputs of two regression models.     -Referring to Scenario 18-1,which of the following values for the level of significance is the smallest for which every explanatory variable is significant individually? A) 0.01 B) 0.025 C) 0.05 D) 0.15
-Referring to Scenario 18-1,which of the following values for the level of significance is the smallest for which every explanatory variable is significant individually?


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Tablet Computer

A portable computing device featuring a touchscreen interface and is larger than a smartphone but smaller than a laptop.

Odds

A ratio representing the probability that a particular event will take place compared to the probability that it will not.

Logistic Regression

A statistical method used for modeling the outcome of a binary dependent variable based on one or more predictor variables.

Test Statistic

A value calculated from sample data to evaluate a hypothesis in statistics.

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