A Multiple Regression Was Conducted to Predict the Price of Yachts

question 138

Multiple Choice

A multiple regression was conducted to predict the price of yachts in thousands of dollars. A dummy variable was included to indicate whether or not the yacht has a flying bridge, where 0 means "no" and 1 means "yes." Which of the following statements is correct using the 0.10 level of significance?

• A) Having a flying bridge significantly increases the price of a yacht by an average of $17.7, given the other variables present.
• B) Having a flying bridge significantly increases the price of a yacht by an average of $17,708, given the other variables present.
• C) We can tell that 17 out of 20 yachts have a flying bridge.
• D) Whether or not the yacht has a flying bridge does not significantly affect the price of a yacht, given the other variables present.

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Definitions:

Organization Principles

Fundamental guidelines or rules that dictate how an organization is structured and operates to achieve efficiency and goal attainment.

Quality

The extent to which a service or product satisfies or goes beyond what customers hope for.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage.

Marketing Mix

A set of actions, or tactics, that a company uses to promote its brand or product in the market, traditionally defined as the 4Ps: Product, Price, Place, and Promotion.