TABLE 14-6
One of the most common questions of prospective house buyers pertains to the average 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 (X₁) , the amount of insulation in inches (X₂) , the number of windows in the house (X₃) , and the age of the furnace in years (X₄) . Given below are the EXCEL outputs of two regression models.
Model 1
Note: 2.96869E-05 = 2.96869×10^-5
Model 2
Note: 2.9036E-06 = 2.9036×10^-6
-Referring to Table 14-6, what is the value of the partial F test statistic for H₀ : β₃ = β₄ = 0 vs. H₁ : At least one β_j ≠ 0, j = 3, 4?

Question

TABLE 14-6
One of the most common questions of prospective house buyers pertains to the average 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 (X₁) , the amount of insulation in inches (X₂) , the number of windows in the house (X₃) , and the age of the furnace in years (X₄) . Given below are the EXCEL outputs of two regression models.
Model 1

Note: 2.96869E-05 = 2.96869×10^-5
Model 2

Note: 2.9036E-06 = 2.9036×10^-6
-Referring to Table 14-6, what is the value of the partial F test statistic for H₀ : β₃ = β₄ = 0 vs. H₁ : At least one β_j ≠ 0, j = 3, 4?

Quizplus · Accepted Answer

The Answer of TABLE 14-6 One of the most common questions of prospective house buyers pertains to the average 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. Model 1 Note: 2.96869E-05 = 2.96869×10 -5 Model 2 Note: 2.9036E-06 = 2.9036×10 -6 -Referring to Table 14-6, what is the value of the partial F test statistic for H₀ : β₃ = β₄ = 0 vs. H₁ : At least one β_j ≠ 0, j = 3, 4? A) 0.820 B) 1.219 C) 1.382 D) 15.787

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