14-22 Introduction to Multiple Regression One of the Most Common $( Y )$

14-22 Introduction to Multiple Regression 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 $\left( X _ { 1 } \right)$ and the amount of insulation in inches $\left( X _ { 2 } \right)$ . Given below is EXCEL output of the regression model.
$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.5270 \\\text { R Square } & 0.2778 \\\text { Adjusted R Square } & 0.1928 \\\text { Standard Error } & 40.9107 \\\text { Observations } & 20 \\\hline\end{array}$

ANOVA


$\begin{array}{lrrrrrr} & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 448.2925 & 90.7853 & 4.9379 & 0.0001 & 256.7522 & 639.8328 \\\text { Temperature } & -2.7621 & 1.2371 & -2.2327 & 0.0393 & -5.3721 & -0.1520 \\\text { Insulation } & -15.9408 & 10.0638 & -1.5840 & 0.1316 & -37.1736\end{array}$

Also $\operatorname { SSR } \left( X _ { 1 } \mid X _ { 2 } \right) = 8343.3572$ and $\operatorname { SSR } \left( X _ { 2 } \mid X _ { 1 } \right) = 4199.2672$
-Referring to Scenario 14-6, what is the 95% confidence interval for the expected change in heating costs as a result of a 1 degree Fahrenheit change in the daily minimum outside
Temperature?

A) [256.7522, 639.8328]
B) [204.7854, 497.1733]
C) [?5.3721, ?0.1520]
D) [?37.1736, 5.2919]

Correct Answer:

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