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 and the amount of insulation in inches Given below is EXCEL output of the regression model.
-Referring to Scenario 14-6, the estimated value of the regression parameter in means that
A)holding the effect of the amount of insulation constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside Temperature by 2.76 degrees.
B)holding the effect of the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $2.76.
C)holding the effect of the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating Costs by $2.76.
D)holding the effect of the amount of insulation constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs By 2.76%.

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  and the amount of insulation in inches  Given below is EXCEL output of the regression model.  
-Referring to Scenario 14-6, the estimated value of the regression parameter  in means that
A)holding the effect of the amount of insulation constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside Temperature by 2.76 degrees. 
B)holding the effect of the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $2.76. 
C)holding the effect of the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating Costs by $2.76. 
D)holding the effect of the amount of insulation constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs By 2.76%.

Quizplus · Accepted Answer

The estimated value of the regression parameter -2.76 for the daily minimum outside temperature (11ebc114_12af_31c7_8acb_b9b6e381f91c_TB8562_11) means that holding the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $2.76. The estimated regression parameter for the daily minimum outside temperature is -2.76. This means that holding the amount of insulation constant, for each 1 degree increase in the daily minimum outside temperature, there is an estimated decrease in mean heating costs by $2.76.

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