TABLE 17-2
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 Table 17-2,what is the 90% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature using Model 1?
A)[-6.58,-3.65]
B)[-6.24,-2.78]
C)[-5.94,-3.08]
D)[-2.37,15.12]

Question

TABLE 17-2
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 Table 17-2,what is the 90% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature using Model 1?
A)[-6.58,-3.65] 
B)[-6.24,-2.78] 
C)[-5.94,-3.08] 
D)[-2.37,15.12]

Quizplus · Accepted Answer

The 90% confidence interval for the expected change in heating costs is calculated based on the statistical output from Model 1, which provides the range within which the true change in heating costs is expected to fall with 90% confidence. Option C is the correct interval based on the data provided in Table 17-2.

TABLE 17-2 One of the Most Common Questions of Prospective House Buyers