In Testing the Significance of a Multiple Regression Model in Which

question 87

Multiple Choice

In testing the significance of a multiple regression model in which there are three independent variables,the null hypothesis is:

• A)\(H _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 } = 1\)
• B) \(H _ { 0 } : \beta _ { 0 } = \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 }\)
• C) \(H _ { 0 } : \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 } = 0\)
• D) \(H _ { 0 } : \beta _ { 0 } = \beta _ { 1 } = \beta _ { 2 } = \beta _ { 3 } \neq 0\)

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Definitions:

Operate

The act of controlling or managing the functions of something, like machinery or a business.

Economic Profit

The distinction between the income generated from selling a product and the opportunity cost of the resources utilized.

Price

Price is the amount of money required to purchase a good or service, often determined by the balance of supply and demand in a market.

Economic Profit

The excess of total revenue over total costs, including both explicit and opportunity costs.