Instruction 13.18 One of the Most Common Questions of Prospective House Buyers

Multiple Choice

Instruction 13.18
One of the most common questions of prospective house buyers pertains to the average 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 Celsius (X₁) , the amount of insulation in cm (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 Instruction 13.18,what can you say about Model 1?

A) The model explains 80.8% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 75.7% of the sample variability of heating costs.
B) The model explains 77.7% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 75.1% of the sample variability of heating costs.
C) The model explains 75.7% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 80.8% of the sample variability of heating costs.
D) The model explains 75.1% of the sample variability of heating costs; after correcting for the degrees of freedom, the model explains 77.7% of the sample variability of heating costs.