If We Have a Regression Line Predicting the Amount of Improvement

question 49

Multiple Choice

If we have a regression line predicting the amount of improvement in your performance as a function of the amount of tutoring you receive, an intercept of 12 would mean that

• A) you need to have 12 hours of tutoring to get an A.
• B) if you don't have any tutoring, the best you can do is a grade of 12.
• C) even without tutoring you will improve.
• D) tutoring helps.

---

Definitions:

Monetary Rule

A guideline for the monetary policy stating that the central bank should aim at regulating the money supply to maintain stable prices, output, and employment.

Rational Expectations

An economic theory proposing that individuals make decisions based on their best forecast using all available information, predicting future events with some degree of accuracy.

Federal Reserve

The central bank of the United States, responsible for monetary policy.

Life Expectancy

The average period that an organism is expected to live, based on statistical analysis.