THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 28

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 + β₅X₅.How much longer would we expect to stay in a hospital in the Northeast than in a hospital in the Midwest?

• A)β₀
• B)β₀ + β₅
• C)β₂
• D)β₀ - β₄

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Definitions:

Fair Trade

A trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers.

Free Trading Nation

A country that has implemented policies to minimize barriers to trade with other countries, such as tariffs and quotas.

Trade Surplus

A situation where a country's exports exceed its imports, leading to a positive balance of trade.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries and generate revenue.