A Researcher Estimates His Model by Means of Regression

question 5

Multiple Choice

A researcher estimates his model by means of regression.He finds a significance level of .0012 and an R-square of .31 for the model.Which conclusion can the researcher draw from these data?

• A)At least one of the independent variables or the constant of the model is significantly related to the dependent variable.
• B)The model explains 31% of the variation in the independent variables.
• C)Multicollinearity is the case.
• D)All independent variables are significantly related to Y.

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Definitions:

Private Goods

Products and services that are excludable and rivalrous, meaning only paying customers can consume them, and one person's consumption prevents another's.

Government Failures

occur when government action results in outcomes that fail to achieve desired welfare improvements or when the intervention leads to an inefficient allocation of resources.

Economic Efficiency

A situation in which all resources are allocated optimally to serve each individual or entity in the best way while minimizing waste and inefficiency.

Public Sector

Part of the economy composed of both public services and public enterprises, owned and operated by the government.