Journalists Are Trying to Find Out the Main Factors Used

question 2

Multiple Choice

Journalists are trying to find out the main factors used by a railway company in establishing dynamic pricing for tickets. One of the possible regression models, based on the information on 20 tickets, is ​ y = Price for a railway ticket ($) ​ x₁ = Number of days before departure ​ x₂ = Weekday (1 = Fri/Sat/Sun, 0 = Mon/Tue/Wen/Thu) ​ x₃ = Distance (km) ​ x₄ = Demand (1 to 5 scale) ​ Using the Minitab output results from fitting this model, carry out the model utility test at a 0.05 significance level. ​ ​

• A) P-value < 0.05, there appears to be a useful linear relationship between y and at least one of the three predictors.
• B) P-value < 0.05, there appears to be a useful linear relationship between y and each of the three predictors.
• C) P-value > 0.05, there is no useful linear relationship between y and any of the predictors.
• D) P-value > 0.05, there is a useful linear relationship between y and each of the three predictors.
• E) P-value > 0.05, there is no useful linear relationship between y and at least one of the predictors.

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Definitions:

Hybrid Models

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