Exhibit 16-4 In a Laboratory Experiment, Data Were Gathered on the Life

question 67

Multiple Choice

Exhibit 16-4
In a laboratory experiment, data were gathered on the life span (Y in months) of 33 rats, units of daily protein intake (X₁) , and whether or not agent X₂ (a proposed life extending agent) was added to the rats diet (X₂ = 0 if agent X₂ was not added, and X₂ = 1 if agent was added.) From the results of the experiment, the following regression model was developed. Also provided are SSR = 60 and SST = 180.
-Refer to Exhibit 16-4. From the above function, it can be said that the life expectancy of rats that were given agent X₂ is

• A)1.7 months more than those who did not take agent X₂
• B)1.7 months less than those who did not take agent X₂
• C)0.8 months less than those who did not take agent X₂
• D)0.8 months more than those who did not take agent X₂

---

Definitions:

Vested Interest

A personal stake or involvement in an undertaking or situation, where the individual stands to gain from its successful outcome.

Environmental Uncertainty

A lack of predictability or stability in the external conditions that can affect an organization's performance.

Resource Dependence

The dependency of organizations on environmental inputs, such as capital, raw materials, and human resources as well as outputs such as customers.

Environmental Uncertainty

The unpredictability that an organization faces due to external factors beyond its control, such as economic conditions or technological changes.