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,suppose the builder wants to test whether the coefficient on Income is significantly different from 0.What is the value of the relevant t-statistic?
A)5.286
B)5.195
C)3.945
D)- 1.509

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,suppose the builder wants to test whether the coefficient on Income is significantly different from 0.What is the value of the relevant t-statistic?
A)5.286 
B)5.195 
C)3.945 
D)- 1.509

Quizplus · Accepted Answer

The Answer of 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,suppose the builder wants to test whether the coefficient on Income is significantly different from 0.What is the value of the relevant t-statistic?
A)5.286 
B)5.195 
C)3.945 
D)- 1.509

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