A Study Has Recently Been Conducted by a Major Computer

question 145

Multiple Choice

A study has recently been conducted by a major computer magazine publisher in which the objective was to develop a multiple regression model to explain the variation in price of personal computers.Three quantitative independent variables were used along with one qualitative variable.The qualitative variable was coded 1 if the computer included a monitor,0 otherwise.The following computer printout shows the final output. Based on this information,which of the following conclusions can be justified?

• A)Knowing whether the computer comes with a monitor or not is a significant factor in explaining the variation in price of the computer.
• B)There are substantial multicollinearity effects in this regression model.
• C)The only significant variable in the model at the .05 level of significance is Hard Drive Capacity.
• D)Removing the Monitor dummy variable would reduce the standard error of the estimate considerably.

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Definitions:

Economic Questions

Economic questions are fundamental queries about how societies allocate scarce resources to produce goods and services for consumption, including decisions on what, how, and for whom to produce.

Resource Distribution

Refers to the allocation of resources, including land, labor, and capital, among different uses and geographic areas, affecting economic outcomes and efficiencies.

Property Rights

Legal rights to use, control, and derive benefits from resources such as land, intellectual property, and personal assets.

Markets

Any structure that allows buyers and sellers to exchange any types of goods, services, and information.