Instruction 16-5
a Chemist Employed by a Pharmaceutical Firm Has

question 78

True/False

Instruction 16-5
A chemist employed by a pharmaceutical firm has developed a muscle relaxant.She took a sample of 14 people suffering from extreme muscle constriction.She gave each a vial containing a dose (X)of the drug and recorded the time to relief (Y)measured in seconds for each.She fit a quadratic model to this data.The results obtained by Microsoft Excel follow.
$\begin{array}{l|l|l|l|l|l|}\text { SUMMARY } & output& \\\hline \text { Regression } & \text { Statistics } & \\\hline \text { Multiple R } & & 0.747 \\\hline \text { R Square } & & 0.558 \\\hline \text { Adj. R Square } & & 0.478 \\\hline \text { Std. Error } & 363.1 \\\hline \text { Observations } & 14 \\\hline\\\hline \text { ANOVA } & & & & & \\\hline & \text { df } & \text { SS } & \text { MS } & F & \text { Signưf } F \\\hline \text { Regression } & 2 & 10344797 & 5172399 & 6.94 & 0.0110 \\\hline \text { Residual } & 11 & 8193929 & 744903 & & \\\hline \text { Total } & 13 & 18538726 & & & \\\hline\\\hline & \text { Coeff } & \text { StdErior } & \text { Stat } & P \text {-value } \\\hline \text { Intercept } & 1283.0 & 352.0 & 3.65 & 0.0040 \\\hline \text { CenDose } & 25.228 & 3.631 & 2.92 & 0.0140 \\\hline \text { CenDoseSq } & 0.8604 & 0.3722 & 2.31 & 0.0410\\\hline\end{array}$ Note: Adj.R Square = Adjusted R Square;Std.Error = Standard Error
-Referring to Instruction 16-5,suppose the chemist decides to use a t test to determine if there is a significant difference between a linear model and a quadratic model that includes a linear term.If she used a level of significance of 0.05,she would decide that the linear model is sufficient.

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Definitions:

Consolidation Worksheet

A financial tool used to merge and organize the financial information of parent and subsidiary companies for reporting purposes.

Gross Profit Rate

A financial ratio that represents the portion of each dollar of revenue that remains after deducting the cost of goods sold, indicating the efficiency of production and pricing.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where the investment gives the investor significant influence over the investee.