A Local Parent Group Was Concerned with the Increasing Cost

question 48

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. $$\begin{array} { | c | c | c | c | c | } \hline & \text { Coefficients } & \text { Stardard Error } & t \text { Statistic } & p \text {-value } \\\hline \text { Intercept } & 707.9144 & 435.1183 & 1.626947 & 0.114567 \\\hline \boldsymbol { x } _ { 1 } & 2.903307 & 81.62802 & 0.035568 & 0.971871 \\\hline \mathbf { x } _ { 1 } ^ { 2 } & 11.91297 & 3.806211 & 3.129878 & 0.003967 \\\hline\end{array}$$ $$\begin{array} { | c | c | c | c | c | c | } \hline & \text { df } & \text { SS } & \text { MS } & F & p \text {-value } \\\hline \text { Regression } & 2 & 32055153 & 16027577 & 47.34557 & 1.49 \mathrm { E } - 09 \\\hline \text { Residual } & 27 & 9140128 & 338523.3 & & \\\hline \text { Total } & 29 & 41195281 & & & \\\hline\end{array}$$ Using $\alpha$ = 0.05 to test the null hypothesis H₀: $\beta$ ₁ = 0, the critical t value is ____.

• A)± 1.311
• B)± 1.699
• C)± 1.703
• D)± 2.502
• E)± 2.052

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Definitions:

Inventory System

A system for tracking inventory levels, orders, sales, and deliveries, which can be manual or technologically driven, helping businesses manage their stock efficiently.

Cost Of Goods Sold

The total cost associated with making or buying products that a company has sold during a specific period.

Gross Profit

The financial gain achieved after deducting the cost of goods sold from total sales revenue, not including other operating expenses, interest, or taxes.

Decreasing Costs

A situation where a company experiences a reduction in the total cost of production or operation over time, often through economies of scale or improved efficiency.