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:

Ambiguous Outcomes

Results or effects of actions that are not clearly defined or can be interpreted in multiple ways.

Power Networks

Structures within an organization or society where power is distributed and exchanged among individuals or groups.

Central Authority

A governing body or organization that holds the primary power within a political, social, or administrative structure.

Project Teams

consist of individuals brought together to achieve a specific goal or project, often from various departments or skill sets.