Question #43 - Reading 1 Multiple Regression

Reading: Reading 1 Multiple Regression

PDF File: Reading 1 Multiple Regression.pdf

Page: 19

Status: Unattempted

Correct Answer: B

Shared Context

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

Question

Is the regression coefficient of changes in mortgage interest rates different from zero at the 5 percent level of significance?

Answer Choices:

A. yes, because p-value < 0.05

B. no, because coefficient is negative

C. yes, because -0.08 < 0.05

Explanation

A coefficient is statistically significantly different from zero if its p-value is less than the level of significance.

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