Figure:
Suppose You Regress the Number of Medals Won by Countries

question 42

Multiple Choice

Figure:
Suppose you regress the number of medals won by countries in the 1996,2000,2004,and 2008 Olympics on GDP Per Capita (Thousands) ,Population (Millions) ,and Olympic Year and that you get the results in Figure 6.1.

$\begin{array}{lc}\text { SUMMARY OUTPUT }\\\\\\\hline \text { Regression Statisties } & \\\hline \text { Multiple R } & 0.473932054 \\\text { R Square } & 0.224611592 \\\text { Adyasted R Square } & 0.218853757 \\\text { Standerd Error } & 14.85665558 \\\text { Observations } & 408 \\\hline\end{array}$


$\begin{array}{lccccc} \text { ANOVA }\\\hline & \text { ff } & S S & M S & F & \text { Sigejficance F } \\\hline \text { Regressice } & 3 & 25830.70959 & 8610.236529 & 39.00973242 & 3.69997 E-22 \\\text { Residual } & 404 & 89170.96688 & 220.7202151 & \\\text { Total } & 407 & 115001.6765 & & \\\hline\end{array}$

$\begin{array}{lcccccc}\hline & \text { Coefficients } & \text { Standand Error } & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 385.4384477 & 338.9966744 & 1.136997725 & 0.25621316 & -280.9792491 & 1051.856144 \\\text { GDP Per Capita (Thousands) } & 0.28651666 & 0.046941033 & 6.103756974 & 2.4315 \mathrm{E}-09 & 0.194237479 & 0.37879584 \\\text { Popplasion (Milions) } & 0.041979674 & 0.00443387 & 9.467954334 & 2.42102 \mathrm{E}-19 & 0.033263338 & 0.050696011 \\\text { Year } & -0.191084928 & 0.169402339 & -1.127994491 & 0.259991678 & -0.524105098 & 0.141935242 \\\hline\end{array}$

$\text { Figure } 6.1$
-Based on the estimates in Figure 6.1,you should conclude that a 1 million increase in population is estimated to be associated with

• A)a statistically significant .042 increase in population.
• B)a statistically significant .042 increase in the total number of medals won,holding all other independent variables constant.
• C)a statistically insignificant .042 increase in the total number of medals won.
• D)a statistically insignificant .042 increase in the total number of medals won,holding all other independent variables constant.

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Definitions:

Impairment Loss

The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.

Fair Value

The estimated market value of an asset or liability, reflecting the price it would fetch in an orderly transaction between market participants at the measurement date.

Book Value

The net value of a company's assets, minus its liabilities, as it appears on the balance sheet.