Consider the Following to Answer the Question(s) Below

question 18

Multiple Choice

Consider the following to answer the question(s) below:
A regression equation that predicts the price of homes in thousands of dollars is = 24.6 + 0.055x1, where x1 is a variable that represents the assessed value of the house and x2 is an indicator variable that represents whether the house is on a busy street (1 = yes, 0 = no) .
-The regression model mentioned above resulted in a high R2 and large F, but individual t-statistics were not significant. Which of the following statements is true?

• A) We would suspect homoscedasticity in the model.
• B) We would suspect autocorrelation in the model.
• C) We would suspect collinearity in the model.
• D) We would suspect that the model contains influential points.
• E) We would suspect that the model contains high-leverage points.

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Definitions:

Productive Language

Language individuals can produce for themselves.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.

Processing Speed

The rate at which an individual can complete mental tasks and interpret information, affecting cognitive functions.

Babbling

An infant’s repetition of syllables such as “ba-ba-ba-ba” and “ma-ma-ma,” which begins at about 6 months of age.