TABLE 14-11 A Weight-Loss Clinic Wants to Use Regression Analysis to Build

question 348

Multiple Choice

TABLE 14-11
A weight-loss clinic wants to use regression analysis to build a model for weight-loss of a client (measured in pounds) . Two variables thought to affect weight-loss are client's length of time on the weight-loss program and time of session. These variables are described below:
Y = Weight-loss (in pounds)
X₁ = Length of time in weight-loss program (in months)
X₂ = 1 if morning session, 0 if not
X₃ = 1 if afternoon session, 0 if not (Base level = evening session)
Data for 12 clients on a weight-loss program at the clinic were collected and used to fit the interaction model:
Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₁X₂ + β₅X₁X₂ + ε
Partial output from Microsoft Excel follows:

-Referring to Table 14-11, what null hypothesis would you test to determine whether the slope of the linear relationship between weight-loss (Y) and time in the program (X₁) varies according to time of session?

• A) H₀: β₁ = β₂ = β₃ = β₄ = β₅ = 0
• B) H₀: β₂ = β₃ = β₄ = β₅ = 0
• C) H₀: β₄ = β₅ = 0
• D) H₀: β₂ = β₃ = 0

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Definitions:

Scientific Management

A theory of management that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity, introduced by Frederick W. Taylor.

Bargaining Power

The capacity of one party to dominate negotiations due to their resources, status, or strategic position.

Collective Bargaining

The process whereby union representatives and employers negotiate labor contracts pertaining to wages, hours, benefits, and working conditions.

Perfectly Competitive

A market structure characterized by many buyers and sellers, no barriers to entry or exit, and where all firms sell identical products, leading to price determination purely by supply and demand.