THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 20

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You are interested in examining the factors that determine the average length of stay in a hospital across states.You collect data on the following variables:
Y = statewide average hospital stay
X₁ = median state income
X₂ = 1 if the state is in the Northeast,0 otherwise
X₃ = 1 if the state is in the South,0 otherwise
X₄ = 1 if the state is in the Midwest,0 otherwise
X₅ = 1 if the state is in the West,0 otherwise
-You run the following regression Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄.What is the additional length of stay that can be attributed to being from a state in the South?

• A)β₃
• B)β₃ + β₀
• C)β₃ - β₂ + β₀
• D)Cannot determine the answer with this specification

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Definitions:

Rescind

To revoke, cancel, or repeal a contract, agreement, or offer, making it as though it never existed.

Concealment

In contract law, taking active steps to prevent another from learning the truth.

Nondisclosure

The obligation to keep certain information confidential and not share it without authorization, typically enforced through agreements.

Innocent Misrepresentation

a false statement made without knowledge of its falsity, but not intended to deceive, which may allow for some remedies if it leads another party to enter into a contract under false pretenses.