A Well-Educated Lumberjack Decides to Use Linear Regression to Predict

question 41

Multiple Choice

A well-educated lumberjack decides to use linear regression to predict the demand for firewood based on the ambient temperature.He has collected data on firewood sales and temperature for the last several days and has performed some preliminary calculations as shown in the table.What is his regression equation based on the data?

• A) Ricks = 50.6 - 0.93 × Temp
• B) Temp = 53.3 - 1.0 × Ricks
• C) Ricks = 0.93 - 50.6 × Temp
• D) Temp = 1.0 - 53.3 × Ricks

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Definitions:

Utility Schedule

A table or graph showing the level of satisfaction or utility that a consumer derives from consuming different quantities of a good or service.

Marginal Utility

The additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Newspaper

A publication, generally made of paper and ink, that is distributed on a regular or daily basis and contains news, articles, advertisements, and other information of public interest.

Marginal Utility

The supplementary contentment or value a shopper obtains by buying an extra unit of a certain item or service.