The Editors of a National Automotive Magazine Recently Studied 30

question 29

Multiple Choice

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon.A number of different independent variables were collected.The following regression output (with some values missing) was recently presented to the editors by the magazine's analysts: Based on this output and your understanding of multiple regression analysis,which of the following statements is true?

• A)The overall multiple regression model explains a significant portion of the variation in highway mileage when tested at a significance level of 0.05.
• B)Only the two independent variables are statistically significant in the presence of the others when a significance level of 0.05 is used to test.
• C)The standard error of the estimate is a negative value due to the multicollinearity problems in the model.
• D)None of the above is true.

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Definitions:

Unemployment Rate

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Friedman-Phelps

An economic theory associated with Milton Friedman and Edmund Phelps, focusing on the natural rate of unemployment and the relationship between inflation and unemployment.

Actual Inflation

The real rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Natural Rate

The level of any economic factor, such as unemployment or interest rates, that is unaffected by short-term fluctuations and is determined by long-term factors.