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,what is the p-value for Wages?
A)0.01
B)0.05
C)0.0001
D)None of the above

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,what is the p-value for Wages?
A)0.01 
B)0.05 
C)0.0001 
D)None of the above

Quizplus · Accepted Answer

The p-value for Wages is 0.0001, indicating a highly significant effect of Wages on the dependent variable in the model.

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