THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 121

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You are interested in determining the number of hours that college students spend studying each week.You identify the following variables:
Y = number of hours spent studying each week
X₁= 1 if the student is a freshman,0 otherwise
X₂ = 1 if the student is a sophomore,0 otherwise
X₃ = 1 if the student is a junior,0 otherwise
X₄ = 1 if the student is a senior,0 otherwise
X₅ = 1 if the student is a business major,0 otherwise
X₆ = 1 if the student is an arts and sciences major,0 otherwise
X₇ = 1 if the student is an engineering major,0 otherwise
-Suppose you model the relationship as Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₅X₅ + β₆X₆.What effect does being a business student have on hours studying each week?

• A)β₅ - β₀
• B)β₅
• C)β₅ + β₀
• D)β_{5 *} β₀

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Contingency Reserves

Funds or resources set aside to cover unexpected costs or losses in a project, program, or portfolio, providing a financial cushion.

Accelerated Depreciation

A method of depreciation that allows for a higher expense deduction in the early years of an asset's life, decreasing its book value more quickly.

Goodwill

Goodwill is an intangible asset that arises when a company acquires another business for a price higher than the fair value of its net tangible assets, representing aspects such as brand reputation and customer loyalty.