TABLE 14-9 You Decide to Predict Gasoline Prices in Different Cities and Cities

question 234

Multiple Choice

TABLE 14-9
You decide to predict gasoline prices in different cities and towns in the United States for your term project. Your dependent variable is price of gasoline per gallon and your explanatory variables are per capita income, the number of firms that manufacture automobile parts in and around the city, the number of new business starts in the last year, population density of the city, percentage of local taxes on gasoline, and the number of people using public transportation. You collected data of 32 cities and obtained a regression sum of squares SSR = 122.8821. Your computed value of standard error of the estimate is 1.9549.
-Referring to Table 14-9, if variables that measure the number of new business starts in the last year and population density of the city were removed from the multiple regression model, which of the following would be true?

• A) The adjusted r² will definitely increase.
• B) The adjusted r² cannot increase.
• C) The coefficient of multiple determination will not increase.
• D) The coefficient of multiple determination will definitely increase.

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Definitions:

Machine Retirement

The process of removing a machine or equipment from active service due to obsolescence, inefficiency, or wear and tear.

Profitability

The ability of a business to generate more revenue than the expenses incurred, resulting in financial gain.

Specific Machine

Refers to a particular piece of equipment or machinery that is designated for a specific task or operation within a manufacturing or production process.

FCFS Scheduling Rule

"First Come, First Served" scheduling rule, used in operations management to assign service or resources to entities on the basis of their arrival order.