TABLE 13-11 A Weight-Loss Clinic Wants to Use Regression Analysis to Build

question 56

Multiple Choice

TABLE 13-11
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 + β5X1X3 + ε
Partial output from Microsoft Excel follows:

-Referring to Table 13-11, in terms of the βs in the model, give the mean change in weight loss (Y) for every one-month increase in time in the program (X₁) when attending the afternoon session.

• A) β₁ + β₄
• B) β₁ + β₅
• C) β₁
• D) β₄ + β₅

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Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, not including fixed costs.

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials and labor costs, unlike fixed costs which remain constant regardless of activity levels.

Fixed Cost

Represents business expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Unit Variable Cost (UVC)

Variable cost expressed on a per unit basis for a product.