TABLE 13-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate

question 33

Multiple Choice

TABLE 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this,the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:
-Referring to Table 13-2,to test that the regression coefficient,β₁,is not equal to 0,what would be the critical values? Use α = 0.05.

• A)±2.5706
• B)±2.7764
• C)±3.1634
• D)±3.4954

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Definitions:

Marginal Productivity

Marginal productivity refers to the additional output that is produced by adding one more unit of a factor of production, holding all other factors constant.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services, forming a crucial component of the economic production process.

Isoquant

A curve illustrating all possible combinations of inputs that yield the same quantity of output, demonstrating how firms can substitute between different factors of production to maintain output levels.

MRTS

The Marginal Rate of Technical Substitution, depicting the rate at which one input can be substituted for another in the production process while keeping output constant.