Preston Gomez Is Attempting to Identify a Linear Relationship That

question 99

Multiple Choice

Preston Gomez is attempting to identify a linear relationship that will link heating and air conditioning costs to total floor area for his commercial properties.Below is a table showing heating /AC costs and floor area for five buildings in the area. The computer output table below shows partial results for the linear regression analysis done here.Determine the upper bound on a 95% confidence interval estimate of the slope in the regression equation-a value that would be entered in the indicated cell of the output table.

• A)3.56
• B)5.14
• C)4.21
• D)3.19
• E)4.73

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Definitions:

Potential Investments

Opportunities for allocating resources with the expectation of generating a future financial return or benefit.

Loanable Funds

Represents the money available for borrowing in the financial markets, determined by savings and the supply of credit.

Equilibrium Interest Rate

The interest rate at which the demand for money balances equals the supply of money in circulation, leading to a stable economic environment.

Loanable Funds

A term in economics referring to all the money available for lending by banks or other financial institutions, influenced by savings and investments.