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, what is your decision and conclusion for the test level of significance using Model 1?
A)Do not reject and conclude that the amount of insulation has a linear effect on heating cots.
B)Reject and conclude that the amount of insulation does not have a linear effect on heating costs.
C)Reject and conclude that the amount of insulation has a negative linear effect on heating costs.
D)Do not reject and conclude that the amount of insulation has a negative linear effect on heating costs.

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, what is your decision and conclusion for the test  level of significance using Model 1?
A)Do not reject and conclude that the amount of insulation has a linear effect on heating cots. 
B)Reject and conclude that the amount of insulation does not have a linear effect on heating costs. 
C)Reject and conclude that the amount of insulation has a negative linear effect on heating costs. 
D)Do not reject and conclude that the amount of insulation has a negative linear effect on heating costs.

Quizplus · Accepted Answer

The Answer of 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, what is your decision and conclusion for the test  level of significance using Model 1?
A)Do not reject and conclude that the amount of insulation has a linear effect on heating cots. 
B)Reject and conclude that the amount of insulation does not have a linear effect on heating costs. 
C)Reject and conclude that the amount of insulation has a negative linear effect on heating costs. 
D)Do not reject and conclude that the amount of insulation has a negative linear effect on heating costs.

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