A Grass Seed Company Conducts a Study to Determine the Relationship

question 6

Multiple Choice

A grass seed company conducts a study to determine the relationship between the density of seeds planted (in pounds per 500 sq ft) and the quality of the resulting lawn.Eight similar plots of land are selected and each is planted with a particular density of seed.One month later the quality of each lawn is rated on a scale of 0 to 100.The regression analysis is given below. Dependent variable is: Lawn Quality
R-squared = 36.0%
Residual Standard Deviation = 9.073602 with df = 6
Sx = 1.929

• A)2.469
• B)1.929
• C)2.667
• D)9.074
• E)2.922

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Definitions:

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Coefficient

A numerical or constant factor in an equation that multiplies the variable, indicating the degree or level of some effect.

Price Elasticity of Supply

The measure of how the quantity supplied of a good changes in response to a change in its price.

Midpoint Formula

A method used in economics to calculate the elasticity of a variable, often used to estimate the price elasticity of demand by averaging the start and end points of a demand curve.