THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 122

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars) as the dependent variable and the age of the car (in years) as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
-What is the value of "C"?

• A)172.25
• B)162.42
• C)140.03
• D)182.99

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Definitions:

Maximin Strategy

In game theory, a strategy chosen to maximize the minimum gain that can be earned.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.

Price-Leadership Model

A market situation where one dominant company sets the price of goods or services within an industry and other companies follow suit.

Nash Equilibrium

In game theory, the result of all players’ playing their best strategy given what their competitors are doing.