A Collector of Grandfather Clocks Believes That the Price Received $$E ( y ) = \beta _ { 0 } + \beta _ { 1 } x + \beta _ { 2 } x ^ { 2 }$$

question 61

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; the resulting estimate of $\beta _ { 1 }$ was $- .31$ .
Interpret this estimate of $\beta _ { 1 }$ .

• A) \(\beta _ { 1 }\) is a shift parameter that has no practical interpretation.
• B) We estimate the auction price will increase \(\$ .31\) for each additional bidder at the auction.
• C) We estimate the auction price will decrease \(\$ .31\) for each additional bidder at the auction.
• D) We estimate the auction price will be \(- \$ .31\) when there are no bidders at the auction.

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Definitions:

Assertive

Being assertive involves confidently expressing one's opinions and needs directly and respectfully, without aggression.

Hidden Agendas

Unstated or secret objectives that influence someone's actions or decisions, often at odds with their publicly stated goals.

Diversity

The inclusion of individuals from a wide range of backgrounds, identities, and experiences, contributing to a rich and varied community.

Decreased Acceptance

A reduction in the approval, agreement, or support for something or someone.