TABLE 13-6 One of the Most Common Questions of Prospective House Buyers

Multiple Choice

TABLE 13-6
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 four 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 Microsoft Excel outputs of two regression models.


-Referring to Table 13-6, what is the 90% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside temperature using Model 1?

A) [6.58, 3.65]
B) [6.24, 2.78]
C) [5.94, 3.08]
D) [2.37, 15.12]