THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 106

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X₁ is the number of loans,X₂ is the interest rate,and X₃ is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results:
= 5.7 + 0.189x₁ - 1.3x₂ + 0.08x₃,
= 3.2,
= 0.03,
= 0.062,
= 0.17,R² = 0.46,and adjusted
= 0.41.
-What should the null and alternative hypotheses be for β₂?

• A)H₀ : β₂ ≠ 0, H₁ : β₂ > 0
• B)H₀ : β₂ = 0, H₁ : β₂ < 0
• C)H₀ : β₂ ≠ 0, H₁ : β₂ = 0
• D)H₀ : β₂ > 0, H₁ : β₂ ≠ 0

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Definitions:

Contingency

A term used to describe the relation between behaviors and their antecedents and consequences.

Behavior

The observable actions or responses of individuals or groups to internal stimuli or external environments.

Potent Reinforcers

Highly effective incentives or rewards that significantly influence behavior.

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve or alter human behavior, often including reinforcement or punishment.