One of the most common question of prospective home 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 4 variables to predict heating costs: the
daily minimum outside temperature in degrees of Fahrenheit (X1),
the amount of insulation in inches (X2), the number of windows in
the house (X3), and the age of the furnace in years (X4). Given
below is a partial Excel regression output: ANOVA d.o.f SS MS F
Significance F Regression 4 169503.4241 42375.86 15.7874 0.00003
Residual 15 40262.3259 2684.155 Total 19 209765.75 Referring to the
table and allowing for a 1% probability of committing a Type 1
error, what is the decision and conclusion for the test: Select
one: a. Do not reject H0 and conclude that the 4 independent
variables have significant individual linear effects on average
heating costs b. Reject H0 and conclude that the 4 independent
variables taken as a group have significant linear effects on
average heating costs c. Do not reject H0 and conclude that the 4
independent variables taken as a group do not have significant
linear effects on average heating costs d. Reject H0 and conclude
that the 4 independent variables taken as a group do not have
significant linear effects on average heating costs
