Exhibit 15-8 The Following Estimated Regression Model Was Developed Relating Yearly Income

question 11

Multiple Choice

Exhibit 15-8
The following estimated regression model was developed relating yearly income (Y in $1,000s) of 30 individuals with their age (X₁) and their gender (X₂) (0 if male and 1 if female) . Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 15-8. The test statistic for testing the significance of the model is

• A)0.73
• B)1.47
• C)28.69
• D)5.22

---

Definitions:

Elastic

Describing a situation where the demand or supply for a product or service is sensitive to changes in price or other factors.

Decrease Supply

A situation where there's a reduction in the quantity of a good or service that producers are willing and able to sell at a given price.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price.

Tax

A mandatory financial charge imposed by a governmental organization on individuals or entities to fund public expenditures.