Based on the Regression Output and Residual Plot Below, Which

question 18

Multiple Choice

Based on the regression output and residual plot below, which of the following is true?
Regression Analysis: Technology Adoption versus Time
Technology Adoption = - 11.9 +
3) 37 Time
S = 6.30783 R-Sq = 82.5%
The regression equation is: Durbin-Watson statistic = 0.278634

• A) The linear model explains 82.5 % of the variability in technology adoption.
• B) The linear model is appropriate.
• C) The linear model is not appropriate.
• D) Both A and B.
• E) Both A and C.

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Definitions:

Productive Efficiency

A point at which an economy operates at the lowest possible cost by utilizing all of its resources efficiently.

Pure Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for a good or service, regardless of the quantity purchased or consumer preferences.

Pure Competitor

A firm in a purely competitive market that sells products identical to those of other firms, making it a price taker with no control over market price.

Pure Monopoly

A market structure where a single seller controls the entire supply of a product or service, with no close substitutes, leading to significant market power.