Use the Following Information to Answer the Question

question 54

Multiple Choice

Use the following information to answer the question. Below is the scatterplot showing the association between raw material (in tons) put into an injection molding machine each day (x) , and the amount of scrap plastic (in tons) that is collected from the machine every 4 weeks (y) . The residual plot of the data is also shown along with a QQ plot of the residuals.

-Choose the statement that is true about the estimators for slope and intercept of a regression line when the conditions of the linear model hold.

• A)The sampling distributions of the estimators follow the chi- square model.
• B)The standard errors for the estimators must come from a population that is Normally distributed.
• C)The estimators for the slope and intercept of a regression line are unbiased.
• D)None of these

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.

Marginal Product

The extra output generated from the inclusion of one additional unit of a particular input while maintaining all other inputs unchanged.

Variable Cost

Costs that change in proportion to the level of production output or activity level of an entity.

Average Variable Costs

Average variable costs represent the per-unit variable costs of production, calculated by dividing total variable costs by the quantity of output.