The Partial Megastat Output Below Is Regression Analysis of the Relationship

question 117

Multiple Choice

The partial megastat output below is regression analysis of the relationship between annual payroll and number of wins in a season for 28 teams in professional sports. The purpose of the analysis
Is to predict the number of wins when given an annual payroll in $millions. Although technically not a sample, the baseball data below will be treated as a convenience sample of all major league professional sports. Refer to the printout above. The critical value of t, at the 5% level of significance, for testing the coefficient of correlation is:

• A) 2.201
• B) 1.833
• C) 2.228
• D) 3.717
• E) 2.262

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Definitions:

Purely Competitive

Describes a market structure where many firms sell identical products, and no single seller can influence the market price.

Short Run

Within the field of economics, a timeframe where a company has at least one input that remains constant and unalterable.

Total Revenue

The entire revenue a company earns from selling products or services before deducting any costs.

Purely Competitive

A market structure characterized by many buyers and sellers, freely entering and exiting the market, with all firms selling identical or nearly identical products.