SCENARIO 18-2 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 ( ), the amount of insulation in inches ( ), the number of windows in the house ( ), and the age of the furnace in years ( ).Given below are the EXCEL outputs of two regression models.
-Referring to Scenario 18-2, the estimated value of the partial regression parameter in Model 1 means that
A)holding the effect of the other independent variables constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum Outside temperature by 4.51 degrees.
B)holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $4.51.
C)holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean Heating costs by $4.51.
D)holding the effect of the other independent variables constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating Costs by 4.51%.

Question

SCENARIO 18-2 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 (  ), the amount of insulation in inches (  ), the number of windows in the house (  ), and the age of the furnace in years (  ).Given below are the EXCEL outputs of two regression models. 
-Referring to Scenario 18-2, the estimated value of the partial regression parameter  in Model 1 means that
A)holding the effect of the other independent variables constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum Outside temperature by 4.51 degrees. 
B)holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $4.51. 
C)holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean Heating costs by $4.51. 
D)holding the effect of the other independent variables constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating Costs by 4.51%.

Quizplus · Accepted Answer

The estimated value of the partial regression parameter for the daily minimum outside temperature in Model 1 is -4.51, which means that holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $4.51. The estimated value of the partial regression parameter 11ebc114_12df_b791_8acb_f5135c46473c_TB8562_11 in Model 1 is -4.51. This means that holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs by $4.51.

SCENARIO 18-2 One of the Most Common Questions of Prospective