A Multiple Regression Was Conducted to Predict the Price of Yachts

question 50

Multiple Choice

A multiple regression was conducted to predict the price of yachts in thousands of dollars.A dummy variable was included to indicate whether or not the yacht has a flying bridge,where 0 means "no" and 1 means "yes." Which of the following statements is correct using the 0.10 level of significance?

• A)Having a flying bridge significantly increases the price of a yacht by an average of $17.7,given the other variables present.
• B)Having a flying bridge significantly increases the price of a yacht by an average of $17,708,given the other variables present.
• C)We can tell that 17 out of 20 yachts have a flying bridge.
• D)Whether or not the yacht has a flying bridge does not significantly affect the price of a yacht,given the other variables present.

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Definitions:

Control Charts

visual mechanisms used in quality control to monitor, control, and improve process performance over time by plotting data points against specific control limits.

Lowest Level Of Quality

Refers to the minimum standard of quality that a product, service, or process must meet to be considered acceptable.

AOQ

Average Outgoing Quality, which is a measure in statistics and quality management used to average the number of defective units in a batch of goods.

Acceptance Sampling

A statistical quality control method that determines whether to accept or reject a batch of products based on sampling a few units from the batch.