A Study Has Recently Been Conducted by a Major Computer

question 33

Multiple Choice

A study has recently been conducted by a major computer magazine publisher in which the objective was to develop a multiple regression model to explain the variation in price of personal computers.Three quantitative independent variables were used along with one qualitative variable.The qualitative variable was coded 1 if the computer included a monitor,0 otherwise.The following computer printout shows the final output. Based on this information,and with a 0.05 level of significance,which of the following conclusions can be justified?

• A)Knowing whether the computer comes with a monitor or not is a significant factor in explaining the variation in price of the computer.
• B)There are substantial multicollinearity effects in this regression model.
• C)The only significant variable in the model at the .05 level of significance is Hard Drive Capacity.
• D)Removing the Monitor dummy variable would reduce the standard error of the estimate considerably.

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Definitions:

Lobbying Fees

Payments made to professional lobbyists for their services in influencing legislative or regulatory actions.

Propaganda

Information, often biased or misleading, used to promote a political cause or point of view.

Structural Unemployment

A type of unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Trade Restrictions

Measures imposed by governments to regulate or limit international trade for the purpose of protecting domestic industries.