Figure:
Suppose You Regress the Self-Reported Number of Cigarettes Smoked

question 41

Multiple Choice

Figure:
Suppose you regress the self-reported number of cigarettes smoked per day on Age,Family Size,and Years of Education and that you get the results in Figure 6.2.
$\begin{array}{lc}\text { SUMMARY OUTPUT }\\\\\\\hline \text { Regression Statistier } & \\\hline \text { Multiple R } & 0.070494476 \\\text { R Square } & 0.004969471 \\\text { Adpasted R Square } & 0.001879314 \\\text { Standard Error } & 4.819403326 \\\text { Observations } & 970 \\\hline\end{array}$


$\begin{array}{lccccc} \text { ANOVA }\\\hline & \text { df } & \text { SS } & \text { MS } & F & \text { Significance } F \\\hline \text { Regression } & 3 & 112.0566012 & 37.3522004 & 1.608161442 & 0.185858614 \\\text { Residual } & 966 & 22436.94237 & 23.22664841 & & \\\text { Total } & 969 & 22548.99897 & & & \\\hline\end{array}$

$\begin{array}{lcccccc}\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & \text { P-value } & \text { Lower } 9396 & \text { Upper } 95 \% \\\hline \text { Intercept } & 4.049920982 & 1.042107341 & 3.886280064 & 0.000108739 & 2.004865844 & 6.094976119 \\\text { Age } & 0.015626984 & 0.010365497 & 1.507596119 & 0.131984878 & -0.004714504 & 0.035968471 \\\text { Family Sire } & -0.093093463 & 0.084602383 & -1.100364552 & 0.271447442 & -0.259119103 & 0.072932177 \\\text { Years of Education } & 0.005642075 & 0.06474525 & 0.087142685 & 0.930576157 & -0.121415476 & 0.132699626 \\\hline\end{array}$

$\text { Figure } 6.2$
-Based on the estimates in Figure 6.2,you should conclude that,holding all other independent variables constant,each additional family member is estimated to be associated with

• A)a statistically significant decrease of 0.093 cigarettes smoked per day.
• B)a statistically insignificant decrease of 0.093 cigarettes smoked per day.
• C)a statistically significant increase of 0.093 cigarettes smoked per day.
• D)a statistically insignificant increase of 0.093 cigarettes smoked per day.

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Definitions:

Efficient

Describes a system or process that achieves its objectives with minimal waste of time or resources.

Scarce Resources

Resources such as manpower, materials, and capital, which are limited in availability and essential for production processes.

Bowed Outward

A characteristic of the production possibilities frontier that reflects the increasing opportunity cost of producing one good as more of it is produced, which results in the curve being concave from the origin.

Economy's Resources

The total assets available for production, including land, labor, capital, and entrepreneurship, within a given economy.