Instruction 13.18 One of the Most Common Questions of Prospective House Buyers

question 266

Multiple Choice

Instruction 13.18
One of the most common questions of prospective house buyers pertains to the average cost of heating in dollars (Y) .
To provide its customers with information on that matter, a large real estate firm used the following four variables to predict heating costs: the daily minimum outside temperature in degrees of Celsius (X₁) , the amount of insulation in cm (X₂) , the number of windows in the house (X₃) and the age of the furnace in years (X₄) . Given below are the Microsoft Excel outputs of two regression models.

-Referring to Instruction 13.18,what can you say about Model 1?

• A) The model explains 80.8% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 75.7% of the sample variability of heating costs.
• B) The model explains 77.7% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 75.1% of the sample variability of heating costs.
• C) The model explains 75.7% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 80.8% of the sample variability of heating costs.
• D) The model explains 75.1% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 77.7% of the sample variability of heating costs.

Formulate research, null, and alternative hypotheses for correlation studies.

Recognize the significance and implications of correlation coefficients in research findings.

Comprehend the steps involved in examining a research question through correlation analysis.

Interpret statistical significance and its importance in correlation studies.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of each.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities and resources that go into their production or provision, aiming for more accurate cost allocation.

Batch Setup

The process of preparing machines and equipment for a specific batch of production, including adjustments and calibrations.

Activity Cost Pool

A way to aggregate all costs associated with a particular business activity, facilitating more accurate allocation of overheads to products or services.