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

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 ( ) , the amount of insulation in inches ( ) , the number of windows in the house ( ) , and the age of the furnace in years ( ) .Given below are the EXCEL outputs of two regression models.
-Referring to Scenario 18-2, the estimated value of the partial regression parameter in Model 1 means that

A) holding the effect of the other independent variables constant, an estimated expected $1 increase in heating costs is associated with a decrease in the daily minimum
Outside temperature by 4.51 degrees.
B) holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in a decrease in heating costs by
$4.51.
C) holding the effect of the other independent variables constant, a 1 degree increase in the daily minimum outside temperature results in an estimated decrease in mean
Heating costs by $4.51.
D) holding the effect of the other independent variables constant, a 1% increase in the daily minimum outside temperature results in an estimated decrease in mean heating
Costs by 4.51%.