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 (X₁)and the amount of insulation in inches (X₂).Given below is EXCEL output of the regression model. Also SSR (X₁ ∣ X₂)= 8343.3572 and SSR (X₂ ∣ X₁)= 4199.2672
-True or False: In calculating the standard error of the estimate,S_YX = ,there are n - k - 1 degrees of freedom,where n is the sample size and k represents the number of independent variables in the model.

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 (X₁)and the amount of insulation in inches (X₂).Given below is EXCEL output of the regression model.

Also SSR (X₁ ∣ X₂)= 8343.3572 and SSR (X₂ ∣ X₁)= 4199.2672
-True or False: In calculating the standard error of the estimate,S_YX =

,there are n - k - 1 degrees of freedom,where n is the sample size and k represents the number of independent variables in the model.

Quizplus · Accepted Answer

This statement is true. The standard error of the estimate calculation involves using the sum of squared residuals, which has n - k - 1 degrees of freedom, where n is the sample size and k is the number of independent variables in the model.

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