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

question 32

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:


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:

African Slavery

The forced enslavement of African people, primarily occurring from the 16th to the 19th centuries, involving their transportation to the Americas to work on plantations.

Slave Societies

Societies where the economy and laws are heavily structured around the institution of slavery, with a significant portion of the population being enslaved individuals.

Navigation Act of 1696

Part of a series of British laws that regulated maritime trade and laid the foundation for the British colonial mercantile system, aiming to restrict colonial trade to English ships and goods.

Vice-Admiralty Courts

Courts established in British colonies to handle maritime cases without a jury, often used for enforcing trade regulations.