In the Regression Equation, ŷ = 2

question 1

Multiple Choice

In the regression equation, ŷ = 2.164 + 1.3657x, and n = 6, the mean of x is 8.667, SS_xx= 89.333 and S_e= 3.44.A 95% confidence interval for the average of y when x=8 is _________

• A)(9.13, 17.05)
• B)(2.75, 23.43)
• C)(10.31, 15.86)
• D)(3.56, 22.62)
• E)(12.09, 14.09)

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Definitions:

Purely Competitive Firm

A business operating in a market where there are many buyers and sellers, each with negligible impact on the price of goods and services.

Economic Profit

The variance between collective earnings and complete expenditures, encompassing both overt and covert costs.

Normal Profit

The minimum amount of profit needed for a company to remain competitive in the market; it equals the total opportunity costs of a firm.

Economic Profits

The surplus or profit earned by a firm or individual after accounting for both explicit and implicit costs.