Exhibit 16-4 In a Laboratory Experiment, Data Were Gathered on the Life

question 80

Multiple Choice

Exhibit 16-4
In a laboratory experiment, data were gathered on the life span (y in months) of 33 rats, units of daily protein intake (x₁) , and whether or not agent x₂ (a proposed life extending agent) was added to the rats diet (x₂ = 0 if agent x₂ was not added, and x₂ = 1 if agent was added.) From the results of the experiment, the following regression model was developed. = 36 + 0.8x₁ - 1.7x₂
Also provided are SSR = 60 and SST = 180.
-Refer to Exhibit 16-4. The life expectancy of a rat that was not given any protein and that did not take agent x₂ is

• A)36.7
• B)34.3
• C)36
• D)38.4

---

Definitions:

Quantity Effects

The changes in the amount of goods or services produced or consumed in response to changes in price or other factors.

Total Revenue

The overall financial income a company acquires from its commercial activities, including the sale of goods and provision of services, within a certain period.

Downward-Sloping

Refers to a curve or line that decreases in value as it moves from left to right, often used in economics to describe demand curves where quantity demanded decreases as the price increases.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy.