Identify the Components of Simple Linear Regression Models and Discuss

question 14

Multiple Choice

Identify the components of simple linear regression models and discuss their applications
The following table exhibits the age of antique furniture and the corresponding prices. Use the table to answer the following question(s) . (Hint: Use scatter diagram and the Excel Trendline tool where necessary) . $$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Number } \\\text { of years }\end{array} & \begin{array} { l } \text { Value } \\\text { (\$) }\end{array} \\\hline 78 & 930 \\\hline 91 & 1010 \\\hline 83 & 970 \\\hline 159 & 1950 \\\hline 134 & 1610 \\\hline 210 & 2880 \\\hline 88 & 980 \\\hline 178 & 2010 \\\hline 124 & 1370 \\\hline 72 & 900 \\\hline\end{array}$$
-Which of the following is true of linear functions used in predictive analytical models?

• A) It is used when the rate of change in a variable decreases or increases quickly and then levels out.
• B) It is used when there is a steady decrease or increase over a range of a variable.
• C) It is used when there is increase at a specific rate.
• D) It is used when there is a rise or fall at a constantly increasing rate.

Interpret the implications of specific utility functions (e.g., min, max) on consumption decisions.

Evaluate how changes in wages affect labor supply decisions.

Analyze consumption choices under unique preference structures (e.g., kinky indifference curves).

Apply utility and budget constraint concepts to non-conventional problems (e.g., study time allocation to maximize grades).

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Definitions:

Young-Helmholtz Theory

A theory of color and how the human eye perceives color through the processing of different wavelengths by three types of color receptors (cones) sensitive to red, green, and blue.

Television Image

A visual representation produced on a screen by a television system.

Visual Images

Representations of objects or scenes that are perceived with the eyes or created in the mind.

Achromatic Color

Colors without hue, including black, white, and all shades of gray, referring to colors that do not contain a chromatic component.