In the Expression $\operatorname { Pr } ( \text { deny } = 1 \mid P / I \text { Ratio, black } ) = \Phi ( - 2.26 + 2.74 P / \text { ratio } + 0.71 \text { black } )$

question 12

Multiple Choice

In the expression $\operatorname { Pr } ( \text { deny } = 1 \mid P / I \text { Ratio, black } ) = \Phi ( - 2.26 + 2.74 P / \text { ratio } + 0.71 \text { black } )$
the effect of increasing the $R ^ { 2 }$ ratio from 0.3 to 0.4 for a white person

• A) is 0.274 percentage points.
• B) is 6.1 percentage points.
• C) should not be interpreted without knowledge of the regression
• D) is 2.74 percentage points.

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Definitions:

Variable Input

An input in the manufacturing process that changes in quantity relative to the level of production output.

Profit-Maximizing Level

The point at which a company achieves the highest profit possible, considering the level of output, costs, and pricing.

Nonlabor Resources

Inputs used in the production process that are not related to direct human labor, such as capital, land, and raw materials.

Wage Bill

the total amount of money paid by employers to their employees for work performed, typically within a specific period.