Assuming the Standard Migration Model Is Correct, Estimates of the Cost

question 15

Multiple Choice

Assuming the standard migration model is correct, estimates of the cost of moving can be as high as $300,000. What is likely the worst explanation for what this expense is so high?

• A) The psychic costs of moving, for example, the uncertainty of making friends and adjusting to a new city, may be quite high for some people.
• B) People may place a high cost on leaving family and friends.
• C) People may attach a very high utility to the social amenities in one's birthplace.
• D) Moving companies typically charge tens of thousands of dollars to transport household goods from one location to another.
• E) People may place a high utility value on the cultural benefits and assimilation of their current location.

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Definitions:

Multicollinearity

A condition in regression analysis where two or more predictor variables are highly correlated, making it difficult to isolate the impact of each variable.

Significance

The degree to which a result from data collection or analysis indicates a meaningful pattern that can lead to a conclusion.

Critical F Value

A statistic used in the analysis of variance (ANOVA) tests, indicating the value beyond which data can be considered statistically significant.

Sum Of Squares

A statistical measure that quantifies the dispersion or variance of a set of numbers, by summing the squared differences from the mean.