Assume the Regression Equation Is Y=$75 + $25x and We

question 73

Multiple Choice

Assume the regression equation is y=$75 + $25x and we are predicting the weekly grocery expenditures where x=number of family members.How much would a family of 4 spend on groceries per week?

• A)$700
• B)$400
• C)$175
• D)$100
• E)$425

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Definitions:

Service

Economic activity where an intangible value is provided, such as healthcare, education, or entertainment, as opposed to producing a tangible product.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other falls, and conversely with an increase of price.

Equilibrium Price

Equilibrium Price is the price point at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.