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 are the degrees of freedom of the partial F test for H₀: β₃ = β₄ = 0 vs.H₁: At least one β_j ≠ 0,j = 3,4?

A) 17 numerator degrees of freedom and 2 denominator degrees of freedom.
B) 2 numerator degrees of freedom and 15 denominator degrees of freedom.
C) 2 numerator degrees of freedom and 17 denominator degrees of freedom.
D) 15 numerator degrees of freedom and 2 denominator degrees of freedom.