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

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 and the amount of insulation in inches Given below is EXCEL output of the regression model.
-Referring to Scenario 14-6, the estimated value of the regression parameter in means that

A) holding the effect of the amount of insulation constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum outside
Temperature by 2.76 degrees.
B) holding the effect of the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by $2.76.
C) holding the effect of the amount of insulation constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean heating
Costs by $2.76.
D) holding the effect of the amount of insulation constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating costs
By 2.76%.