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

question 314

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 and allowing for a 1% probability of committing a type I error, what is the decision and conclusion for the test j =1, 2,..., 4 using Model 1?

• A)Do not reject and conclude that the 4 independent variables have significant individual linear effects on heating costs.
• B)Reject and conclude that the 4 independent variables taken as a group have significant linear effects on heating costs.
• C)Do not reject and conclude that the 4 independent variables taken as a group do not have significant linear effects on heating costs.
• D)Reject and conclude that the 4 independent variables taken as a group do not have significant linear effects on heating costs.

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Definitions:

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that naturally and automatically triggers a response without prior conditioning in the realm of behavioral psychology.

Undesirable Behavior

Actions or conduct by an individual or group that are considered harmful or inappropriate within a specific context or society.

Reinforcement

A principle in behavioral psychology where the probability of a behavior is increased through rewards or decreased through punishment.

Punishment

The imposition of a penalty as retribution for an offense or wrongdoing.