TABLE 13-10 You Worked as an Intern at We Always Win Car

question 218

Multiple Choice

TABLE 13-10
You worked as an intern at We Always Win Car Insurance Company last summer. You noticed that individual car insurance premiums depend very much on the age of the individual, the number of traffic tickets received by the individual, and the population density of the city in which the individual lives. You performed a regression analysis in Microsoft Excel and obtained the following information:

-A dummy variable is used as an independent variable in a regression model when

• A) the variable involved is numerical.
• B) the variable involved is categorical.
• C) a curvilinear relationship is suspected.
• D) when two independent variables interact.

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Definitions:

Ordering Supplies

The process of requesting and acquiring necessary materials or stock for business operations, production, or office maintenance.

Large Demand

A significant consumer interest or need for a product or service which often leads to high sales volume.

Expiration Dates

The specified dates after which a product, especially food or medicine, is not guaranteed to be safe or effective and should not be used.

Periodic Supplies

Items or materials that are regularly replaced or replenished over a specified period due to use or expiry.