A Random Sample of 150 Yachts Sold in Canada Last $\mathrm { R } ^ { 2 } = 15.2 \%$

question 37

Multiple Choice

A random sample of 150 yachts sold in Canada last year was taken.A regression to predict the price (in thousands of dollars) from length (in metres) has an $\mathrm { R } ^ { 2 } = 15.2 \%$ What would you predict about the price of the yacht whose length was two standard deviations below the mean?

• A)The price should be 0.780 SDs below the mean in price.
• B)The price should be 0.390 SDs below the mean in price.
• C)The price should be 1 SD below the mean in price.
• D)The price should be 1.842 SDs below the mean in price.
• E)The price should be 1 SD above the mean in price.

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Definitions:

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain those activities.

Barber

A person whose profession involves cutting, dressing, grooming, styling and shaving men's and boys' hair or beards.

Purely Competitive

A market structure characterized by many small firms producing an identical product, where no single firm can influence the market price.