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:

Honesty

The quality of being truthful, transparent, and free from deceit or fraud in actions, expressions, and communications.

Premiums

High-quality or additional products offered as an incentive to promote a primary product or service.

Retailer's Store

A business establishment that sells goods directly to the public, typically from a physical location.

Customers

Individuals or organizations that purchase goods or services from a business, determining its success through their satisfaction and loyalty.