The Editors of a National Automotive Magazine Recently Studied 30

question 127

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 is the result of using a forward selection stepwise regression approach. Based on the regression output,which of the following statements is true?

• A)There is a multicollinearity problem since the standard error of the estimate actually increased when the second variable,"Price as Tested," entered the model.
• B)The R-square value increased when the second variable entered the model.
• C)Neither variable in the model is statistically significant at the alpha = 0.05 level.
• D)The reason that only two variables entered the model is due to the small sample size used in this study.