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

question 71

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,at the 0.01 level of significance,what conclusion should the builder reach regarding the inclusion of Income in the regression model?

• A)Income is significant in explaining house size and should be included in the model because its p-value is less than 0.01.
• B)Income is significant in explaining house size and should be included in the model because its p-value is more than 0.01.
• C)Income is not significant in explaining house size and should not be included in the model because its p-value is less than 0.01.
• D)Income is not significant in explaining house size and should not be included in the model because its p-value is more than 0.01.

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Definitions:

Abdominopelvic Region

Refers to the combined area of the abdomen and the pelvis, enclosing the abdominal and pelvic cavities containing organs such as the stomach, liver, intestines, and bladder.

Neck

The part of the body connecting the head to the shoulders and torso, comprising vertebrae, muscles, blood vessels, and nerves.

Back

The posterior portion of the human body, extending from the neck to the lower end of the spine.

Cricoid Cartilage

A ring-shaped cartilage found at the base of the larynx (voice box), providing structure and support.