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A Local Parent Group Was Concerned with the Increasing Cost

question 87

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. $\begin{array} { | c | c | c | c | c | } \hline & \text { Coefficients } & \text { Stardard Error } & t \text { Statistic } & p \text {-value } \\\hline \text { Intercept } & 707.9144 & 435.1183 & 1.626947 & 0.114567 \\\hline \boldsymbol { x } _ { 1 } & 2.903307 & 81.62802 & 0.035568 & 0.971871 \\\hline \mathbf { x } _ { 1 } { } ^ { 2 } & 11.91297 & 3.806211 & 3.129878 & 0.003967 \\\hline\end{array}$ $\begin{array} { | c | c | c | c | c | c | } \hline & \mathrm { df } & \mathbf { 5 s } & \mathrm { MS } & F & p \text {-value } \\\hline \text { Regression } & 2 & 32055153 & 16027577 & 47.34557 & 1.49 \mathrm { E } - 09 \\\hline \text { Residual } & 27 & 9140128 & 338523.3 & & \\\hline \text { Total } & \mathbf { 2 9 } & 41195281 & & & \\\hline\end{array}$ Using $\alpha$ = 0.01 to test the null hypothesis H₀: $\beta$ ₁ = $\beta$ ₂ = 0, the critical F value is ____.

Definitions:

Utility-Maximizing

The process or behavior of selecting the combination of goods and services that provide the highest utility or satisfaction to an individual, given their budget constraint.

Present Value

The worth at present of a future money amount or sequences of cash flows, applying a specified rate of return.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on savings.