A Quality Manager Is Developing a Regression Model to Predict

question 35

Multiple Choice

A quality manager is developing a regression model to predict the total number of defects as a function of the day of the week that the item is produced.Production runs are done 10 hours a day, 7 days a week.The explanatory variable is ______.

• A)day of week
• B)production run
• C)percentage of defects
• D)number of defects
• E)number of production runs

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Definitions:

Marginal Utilities

The increased contentment or value obtained by a consumer through the consumption of one extra unit of a good or service.

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the marginal utility that person derives from consuming each additional unit of that product.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

The change in demand for a good that results from a change in its price, making consumers more likely to purchase more of a less expensive alternative or less of a more expensive one.