SCENARIO 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 Scenario 14-5,suppose the microeconomist wants to test whether the coefficient on Capital is significantly different from 0.What is the value of the relevant t-statistic?
A)0.609
B)2.617
C)4.804
D)25.432

Question

SCENARIO 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 Scenario 14-5,suppose the microeconomist wants to test whether the coefficient on Capital is significantly different from 0.What is the value of the relevant t-statistic?
A)0.609 
B)2.617 
C)4.804 
D)25.432

Quizplus · Accepted Answer

The Answer of SCENARIO 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 Scenario 14-5,suppose the microeconomist wants to test whether the coefficient on Capital is significantly different from 0.What is the value of the relevant t-statistic?
A)0.609 
B)2.617 
C)4.804 
D)25.432

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