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

Multiple Choice

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 are the degrees of freedom of the partial F test for H₀ : β₃ = β₄ = 0 vs. H₁ : At least one β_j ≠ 0, j = 3, 4?

A) 2 numerator degrees of freedom and 15 denominator degrees of freedom
B) 15 numerator degrees of freedom and 2 denominator degrees of freedom
C) 2 numerator degrees of freedom and 17 denominator degrees of freedom
D) 17 numerator degrees of freedom and 2 denominator degrees of freedom