Refer to Scenario 1

question 224

Multiple Choice

Refer to Scenario 1.2 below to answer the question(s) that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. A graph of the volume of automobile emissions on one axis and the level of average global temperatures on the other axis is an example of

• A) an economic model.
• B) an economic theory.
• C) a variable theory.
• D) inductive reasoning.

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Definitions:

Logistic Regression Model

A statistical model used to predict a binary outcome (such as yes/no, success/failure) based on one or more predictor variables.

Hypotheses

Assumptions or propositions that are subject to verification or falsification through scientific methods.

Indicator Variable

A variable used in statistics and econometrics that takes on a value of 1 if a specific condition is true and 0 if it is not.

Test Statistic

A value calculated from sample data during a hypothesis test used to decide whether to support or reject the null hypothesis.