Consider the Regression Equation Y = 5 + 16X₁

question 4

Multiple Choice

Consider the regression equation Y = 5 + 16X₁ + 38X₂ relating annual expenditures on a particular product Y to X₁ and X₂, where
Which of the following is FALSE? The equation suggests

• A) An upper class person could be expected on the average to spend $38 per year more than a lower class person on the product.
• B) A middle class person could be expected on the average to spend $16 more per year on the product than a lower class person.
• C) A lower class person could be expected on the average to spend $5 per year on the product.
• D) An upper class person could be expected on the average to spend $22 more per year on the product than a middle class person.
• E) An upper class person could be expected on the average to spend $38 per year on the product.

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Definitions:

Test-retest Reliability

The consistency of a test's results when the same individuals take the same test again after a period of time, measuring its stability over time.

Z score

A numerical metric that represents how a specific value's deviation relates to the average of a dataset, quantified by the number of standard deviations away from that average.

Normal Curve

A bell-shaped curve, also known as a Gaussian distribution, representing the spread of a variable in a way that most values cluster around the mean.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.