THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 158

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.She used Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + 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,X₃ is the dollar value of expenditures of the bank on advertising (in thousands of dollars) ,and X₄ is a dummy variable equal to 1 if the observation is either June,July,or August.
-Suppose that she obtained = 3.8 + 0.23x₁ - 1.31x₂ + 0.032x₃ + 1.05x₄ - 0.22x₃x₄ by using data from the past 24 months.How would we interpret the coefficient of x₃x₄?

• A)On an average,we would expect $220,000 less in loans during the months of June,July,and August.
• B)Advertising is more effective during June,July,and August.
• C)Advertising is less effective in June,July,and August.
• D)On an average,we would expect $220,000 more in loans during the months of June,July,and August.

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Definitions:

Significant Other

A person considered extremely important to an individual's life or well-being, often a romantic partner but can also include close friends or family members.

Secure Attachment Style

A pattern of attachment characterized by trust, a sense of security, and a positive view of oneself and relationships.

Anxious-Ambivalent

A type of insecure attachment style where individuals are overly needy and preoccupied with their relationships.

Obsessive

Characterized by persistent and intrusive thoughts, urges, or images that cause significant anxiety or distress.