The Editors of a National Automotive Magazine Recently Studied 30

question 93

Multiple Choice

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon. A number of different independent variables were collected. Included in these were two variables described as follows: If these two variables are to be included in a regression model, how many additional variables will be needed?

• A) The model explains nearly 63 percent of the variation in the dependent variable.
• B) If tested at the 0.05 significance level, the overall model would be considered statistically significant.
• C) The variable X1 has a slope coefficient that is significantly different from zero if tested at the 0.05 level of significance.
• D) All of the above are true.

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Definitions:

Budgeting

The process of creating a plan to spend your money over a certain period, involving the balancing of income against expenditures.