Question #42 - Reading 1 Multiple Regression

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 19

Status: Unattempted

Correct Answer: A

Shared Context

- Using the regression model developed, the closest prediction of sales for December 20x6 is: A) $55,000. B) $36,000. C) $44,000.

Question

Will Stumper conclude that the housing starts coefficient is statistically different from zero and how will he interpret it at the 5% significance level:

Answer Choices:

A. different from zero; sales will rise by $100 for every 23 house starts

B. not different from zero; sales will rise by $0 for every 100 house starts

C. different from zero; sales will rise by $23 for every 100 house starts

Explanation

A p-value (0.017) below significance (0.05) indicates a variable which is statistically different from zero. The coefficient of 0.23 indicates that sales will rise by $23 for every 100 house starts.

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