In a Cross Section Regression of 48 States,the Following Linear

question 27

Multiple Choice

In a cross section regression of 48 states,the following linear demand for per-capita cans of soda was found: Cans = 159.17 - 102.56 Price + 1.00 Income + 3.94Temp $$\begin{array} { l r r r } \hline & \text { Coeffcients}& \text { Standard Error } & t \text { Stat } \\\hline \text { Intercept } & 159.17 & 94.16 & 1.69 \\\text {Price } & - 102.56 & 33.25 & - 3.08 \\\text { Income } & 1.00 & 1.77 & 0.57 \\\text { Temperature } & 3.94 & 0.82 & 4.83 \\\hline\end{array}$$
$\mathrm { R } - \mathrm { Sq } = 54.1 \% \quad \mathrm { R } - \mathrm { Sq } ( \mathrm { adj } ) = 51.0 \%$
From the linear regression results in the cans case above, we know that:

• A) Price is insignificant
• B) Income is significant
• C) Temp is significant
• D) As price rises for soda,people tend to drink less of it
• E) All of the coefficients are significant

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Definitions:

Bins

Categories or intervals used in data analysis to group data points that are close in value, especially in histograms.

Length of Stay

refers to the duration of time an individual spends in a single place or institution, such as a hospital or hotel.

Hospitalization

The process or fact of being admitted to a hospital for treatment, care, or observation.

Histograms

Graphical representations of data distribution where data is grouped into ranges (bins) and illustrated with bars, showing the frequency of data within each range.