Find the Least-Squares Regression Line and Use the Line to Make

question 182

Multiple Choice

Find the Least-Squares Regression Line and Use the Line to Make Predictions
-The data below are the average one-way commute times (in minutes) for selected students and the number of absences for those students during the term. Find the equation of the regression line for the given data. What would be the predicted number of absences if the commute time was 40 minutes? Is this a reasonable question? Round the predicted number of absences to the nearest whole number.

• A) \(\hat { y } = 0.449 \mathrm { x } - 30.27 ; - 12\) absences; No, it is not reasonable. 40 minutes is well outside the scope of the model.
• B) \(\hat { y } = 0.449 \mathrm { x } - 30.27 ; - 12\) absences; \(\mathrm { Yes }\), it is reasonable.
• C) \(\hat { y } = 0.449 \mathrm { x } + 30.27 ; 48\) absences; Yes, it is reasonable.
• D) \(\hat { y } = 0.449 \mathrm { x } + 30.27 ; 48\) absences; No, it is not reasonable. 40 minutes is well outside the scope of the model.

---

Definitions:

Opportunity Costs

This refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Inventory

The complete inventory of products and materials owned by a business, intended for either production or selling.

Net Working Capital

The disparity between a firm's existing assets and its immediate liabilities, showing the company's short-term fiscal stability and efficiency in operations.

Bottom-Up Approach

An investment strategy that starts with the analysis of individual stocks and then proceeds to the broader economy.