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 ( X 1 ), the amount of insulation in inches ( X 2 ), the number of windows in the house ( X 3 ), 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,what minimum annual income would an individual with a family size of 9 and 10 years of education need to attain a predicted 5,000 square foot home (House = 50)?
A)$44.14 thousand
B)$56.75 thousand
C)$178.33 thousand
D)$211.85 thousand

Question

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 ( X 1 ), the amount of insulation in inches ( X 2 ), the number of windows in the house ( X 3 ), 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,what minimum annual income would an individual with a family size of 9 and 10 years of education need to attain a predicted 5,000 square foot home (House = 50)?
A)$44.14 thousand 
B)$56.75 thousand 
C)$178.33 thousand 
D)$211.85 thousand

Quizplus · Accepted Answer

The correct answer is A because the individual needs an annual income of $44.14 thousand to attain a predicted 5,000 square foot home.

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