A Regression Model Examining the Amount of Distance a Long

question 790

Multiple Choice

A regression model examining the amount of distance a long distance runner runs (in miles) to
Predict the amount of fluid the runner drinks (ounces) has a slope of 4.6. Which interpretation is
Appropriate?

• A) We predict 4.6 miles for every ounce that is drunk.
• B) The correlation is needed to interpret this value.
• C) We predict for every mile run, the runner drinks 4.6 more ounces.
• D) Each mile adds 4.6 more ounces.
• E) A runner drinks a minimum of 4.6 oz.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which each supplier's offerings are perfectly substitutable by the consumers.

Profit-Maximizing Rule

A principle stating that firms achieve maximum profit when they produce goods or services to the point where marginal cost equals marginal revenue.

Cost-Minimization Rule

A principle in economics that suggests a firm should produce any given output at the lowest possible cost.

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