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:

Output Cost

The total expenses incurred in the process of producing goods or services, including both fixed and variable costs.

Long-Run Total Cost

The aggregate cost of production when all factors of production, including capital and labor, are variable in the long term.

Profits Maximization

The process or strategy employed by a business to increase its net earnings and achieve the highest level of profit possible.

Price Received

The amount of money paid to a producer or seller for a product or service.