If the Price of Houses Increases, and the Quantity of Swimming

question 37

Multiple Choice

If the price of houses increases, and the quantity of swimming pools decreases:

• A) houses and pools are luxury goods
• B) houses and pools are complements in consumption
• C) houses and pools are substitutes in production
• D) house and pools are substitutes in consumption

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Definitions:

Regression Coefficient

A value that represents the amount by which a dependent variable changes when a related independent variable changes by one unit.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.

Variance

Average squared deviation from the mean.

Degrees Freedom

Degrees of freedom refer to the number of independent values or quantities which can be assigned to a statistical distribution or to the number of variables minus the number of constraints in a system.