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:

It's Not Personal

A phrase indicating that actions or decisions are based on professional or objective considerations rather than personal feelings or biases.

Organizations

Entities composed of people working together towards common goals, structured to coordinate their activities.

Part-Time Workers

Employees who work fewer hours than the full-time work schedule, often with fewer benefits and responsibilities.

Violence

The use of physical force to harm someone, inflict damage, or intimidate or coerce others.