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

question 102

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,suppose the builder wants to test whether the coefficient on School is significantly different from 0.What is the value of the relevant t-statistic?

• A)5.286
• B)5.195
• C)3.945
• D)- 1.509

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Definitions:

Ego

The part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.

Erogenous Zones

Areas of the body that are particularly sensitive to sexual stimulation.

Id's Pleasure-Seeking Energies

The component of the human psyche in Freudian psychology associated with instinctual urges and drives for immediate gratification.

Psychosexual Stages

The childhood stages of development (oral, anal, phallic, latency, genital) during which, according to Freud, the id’s pleasure-seeking energies focus on distinct erogenous zones.