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

Multiple Choice

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 ( X₁ ) and the amount of insulation in inches ( X ₂ ) . Given below is EXCEL output of the regression model.



Also SSR (X₁ | X₂) = 8343.3572 and SSR (X₂ | X₁) = 4199.2672
-Referring to Scenario 14-6,what can we say about the regression model?

A) The model explains 17.12% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
B) The model explains 19.28% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 27.78% of the sample variability of heating costs.
C) The model explains 27.78% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 19.28% of the sample variability of heating costs.
D) The model explains 19.28% of the variability of heating costs;after correcting for the degrees of freedom,the model explains 17.12% of the sample variability of heating costs.