TABLE 14-6
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 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X 1 )and the amount of insulation in inches (X 2 ).Given below is EXCEL output of the regression model. Also SSR (X 1 ∣ X 2 )= 8343.3572 and SSR (X 2 ∣ X 1 )= 4199.2672
-Referring to Table 14-6,what is the 95% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature?
A)[256.7522,639.8328]
B)[204.7854,497.1733]
C)[-5.3721,-0.1520]
D)[-37.1736,5.2919]

Question

TABLE 14-6
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 2 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit (X 1 )and the amount of insulation in inches (X 2 ).Given below is EXCEL output of the regression model.  Also SSR (X 1 ∣ X 2 )= 8343.3572 and SSR (X 2 ∣ X 1 )= 4199.2672
-Referring to Table 14-6,what is the 95% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature?
A)[256.7522,639.8328] 
B)[204.7854,497.1733] 
C)[-5.3721,-0.1520] 
D)[-37.1736,5.2919]

Quizplus · Accepted Answer

The confidence interval for the expected change in heating costs due to a 1 degree Fahrenheit change in temperature is negative, indicating a decrease in costs, which matches option C.

TABLE 14-6 One of the Most Common Questions of Prospective House Buyers