A Collector of Grandfather Clocks Believes That the Price Received $( y$

question 117

Multiple Choice

A collector of grandfather clocks believes that the price received for the clocks at an auction increases with the number of bidders, but at an increasing (rather than a constant) rate. Thus, the model proposed to best explain auction price $( y$ , in dollars) by number of bidders $( x )$ is the quadratic model
$$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x + \beta _ { 2 } x ^ { 2 }$$
This model was fit to data collected for a sample of 32 clocks sold at auction; a portion of the printout follows:

$\begin{array}{lrrrrr}\hline \text { SOURCE } & \text { DF } & \text { SS } & \text { MS } & \text { FVALUE } & \text { PROB }>\text { F } \\\text { MODEL } & 2 & 4277160 & 2138579 & 120 & .0005 \\\text { ERROR } & 29 & 514034 & 17725 & & \\\text { TOTAL } & 31 & 4791194 & & &\end{array}$

$\begin{array}{lcll}\text { ROOT MSE } & 133 & \text { R-SQUARE } & 893 \\\text { DEP MEAN } & 1327 & \text { ADJ R-SQ } & .885\end{array}$

$\begin{array} { l l l l } & \text {PARAMETER }& \text {STANDARD}& \text {T FOR 0:}\\ \text {VARIABLES}&\text { ESTIMATE } & \text { ERROR } & \text { PARAMETER } = 0 & \text { PROB } > | T | \end{array}$


$\begin{array} { l r r r r } \text { INTERCEPT } & 286.42 & 9.66 & 29.64 & .0001 \\\mathrm { X } & .31 & .06 & 5.14 & .0016 \\\mathrm { X } \cdot \mathrm { X } & - .000067 & .00007 & - 0.95 & .3600 \\\hline\end{array}$

An outlier for the model is a clock with a residual that _____in absolute value. (Fill in the blank.)

• A) exceeds 133
• B) exceeds .893
• C) is less than 266
• D) exceeds 399

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Definitions:

Refreezing Step

The final phase in Lewin's change model where new behaviors or attitudes are solidified into the culture or habits.

Relatively Secure

Describes a state or condition that is generally safe or protected from harm or loss when compared to other states or conditions.

Holmes-Rahe Readjustment Scale

A scale that measures stress levels based on the number and type of life changes a person has experienced within a certain period.

Stressful Events

Situations or occurrences that cause tension or anxiety.