TABLE 14-11 A Weight-Loss Clinic Wants to Use Regression Analysis to Build

question 104

Multiple Choice

TABLE 14-11
A weight-loss clinic wants to use regression analysis to build a model for weight loss of a client (measured in pounds) .Two variables thought to affect weight loss are client's length of time on the weight-loss program and time of session.These variables are described below:
Y = Weight loss (in pounds)
X₁ = Length of time in weight-loss program (in months)
X₂ = 1 if morning session,0 if not
Data for 25 clients on a weight-loss program at the clinic were collected and used to fit the interaction model:
Y = β₀ + β₁X₁ + β₂X₂ + β₃X₁X₂ + ε
Output from Microsoft Excel follows:
-Referring to Table 14-11,what null hypothesis would you test to determine whether the slope of the linear relationship between weight loss (Y) and time on the program (X₁) varies according to time of session?

• A)H₀ : β₁ = 0
• B)H₀ : β₂ = 0
• C)H₀ : β₃ = 0
• D)H₀ : β₁ = β₂ = 0

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Definitions:

Activity-based Costing

A pricing strategy that allocates expenses to goods or services according to the tasks they necessitate, striving for a more accurate distribution of costs.

Relevant Cost

A cost that should be considered when making decisions.

Avoidable Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product line.

Irrelevant Costs

Costs that will not be affected by a decision and therefore should not be considered when making that decision.