A Local Parent Group Was Concerned with the Increasing Cost

question 56

Multiple Choice

A local parent group was concerned with the increasing cost of school for families with school aged children.The parent group was interested in understanding the relationship between the academic grade level for the child and the total costs spent per child per academic year.They performed a multiple regression analysis using total cost as the dependent variable and academic year (x₁) as the independent variables.The multiple regression analysis produced the following tables. $$\begin{array} { | c | c | c | c | c | } \hline & \text { Coefficients } & \text { Stardard Error } & t \text { Statistic } & p \text {-value } \\\hline \text { Intercept } & 707.9144 & 435.1183 & 1.626947 & 0.114567 \\\hline \boldsymbol { x } _ { 1 } & 2.903307 & 81.62802 & 0.035568 & 0.971871 \\\hline \mathbf { x } _ { 1 } { } ^ { 2 } & 11.91297 & 3.806211 & 3.129878 & 0.003967 \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | c | } \hline & \text { Df } & \text { SS } & \text { MS } & F & p \text {-value } \\\hline \text { Regression } & 2 & 32055153 & 16027577 & 47.34557 & 1.49 \mathrm { E } - 09 \\\hline \text { Residual } & 27 & 9140128 & 338523.3 & & \\\hline \text { Total } & 29 & 41195281 & & & \\\hline\end{array}$$ The regression equation for this analysis is ____________.

• A)= 707.9144 + 2.903307 x₁ + 11.91297 x₁²
• B)= 707.9144 + 435.1183 x₁ + 1.626947 x₁²
• C) = 435.1183 + 81.62802 x₁ + 3.806211 x₁²
• D) = 1.626947 + 0.035568 x₁ + 3.129878 x₁²
• E) = 1.626947 + 0.035568 x₁ - 3.129878 x₁²

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Definitions:

Firms

Business organizations involved in the production and sale of goods and services.

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay to their staff.

Regressive

A term typically used to describe tax systems that take a smaller percentage of income as income increases, disproportionately affecting lower-income earners.

Low Income Levels

describe the economic condition where individuals or households earn less than the median income of a specific geographic area, often leading to limited access to basic needs and services.