Consider the Following to Answer the Question(s) Below

question 16

Multiple Choice

Consider the following to answer the question(s) below:
National birth rates (births per 1,000) may be influenced by the average national life expectancy in years and the national literacy rate (% of population that can read and write) . Data for 49 countries were obtained and the regression results follow.
-Which of the following statements best describes this model (using α = 0 .05) ?

• A) The regression model is significant overall, and both Life Expectancy and Literacy Rate are significant independent variables in explaining the National Birth Rate.
• B) The regression model is not significant overall.
• C) Life Expectancy is not a significant independent variable in explaining the National Birth Rate.
• D) There is no evidence that Literacy Rate is a significant independent variable in explaining the National Birth Rate.
• E) The regression model is not significant overall because only Life Expectancy is significant independent variable in explaining the National Birth Rate.

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Definitions:

Price-Elasticity Of Demand

A gauge of the extent to which the amount of a product sought by consumers alters following a modification in its price.

Percentage Change

A mathematical calculation that demonstrates how much a quantity has increased or decreased relative to its previous value, often expressed as a percentage.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to changes in price.

Demand Schedule

A table that lists the quantity of a good a person will buy at different prices.