A Multiple Regression Was Conducted to Predict the Price of Yachts

question 56

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.

Assess how the presence of economic profits influences the market structure dynamics.

Identify the demand and marginal revenue curve characteristics for monopolistically competitive firms.

Understand the implications of monopolistic competition on resource efficiency and market outcomes.

Recognize the conditions for long-run equilibrium in monopolistically competitive markets, including the relation between price, average total cost, and output.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets.

Operating Activities

Those activities directly related to the production, sale, and delivery of a company's products or services, as reflected in its income statement.

Current Accounts

Balances held in checking accounts that are typically used for the day-to-day money transactions and management.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.