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

question 85

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 ( 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.


-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

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Definitions:

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.