A Local Tire Dealer Wants to Predict the Number of Tires

question 132

Multiple Choice

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of monthly tire sales (in thousands of tires) and monthly advertising expenditures (in thousands of dollars) .Residuals are calculated for all of the randomly selected six months and ordered from smallest to largest. Determine the normal score for the third residual in the ordered array.

• A)0.421
• B)-0.2
• C)0.2
• D)-0.421

---

Definitions:

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to changes in its price.

Demand for Land

The desire or need by individuals or businesses to purchase or lease land for various uses such as agriculture, commercial, or residential purposes.

Supply of Land

The total land area that is available for a particular use, such as agriculture, industry, or housing, which is often fixed and inelastic in the short term.

MRP Curve

The marginal revenue product curve, illustrating the additional revenue generated from employing one more unit of a factor of production.