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

Multiple Choice

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 ( X₁ ) , the amount of insulation in inches ( X ₂ ) , the number of windows in the house ( X₃ ) , and the age of the furnace in years ( X ₄ ) . Given below are the EXCEL outputs of two regression models.


-Referring to Scenario 18-1,what minimum annual income would an individual with a family size of 4 and 16 years of education need to attain a predicted 10,000 square foot home (House = 100) ?

A) $44.14 thousand
B) $56.75 thousand
C) $178.33 thousand
D) $211.85 thousand