Which Statement Best Describes This Regression Where Y = Highway

question 88

Multiple Choice

Which statement best describes this regression where Y = highway miles per gallon (MPG) in 91 cars?

• A)Regression is statistically significant but with large error in the MPG predictions.
• B)Regression is statistically significant and has quite small MPG prediction errors.
• C)Regression is not quite significant,but predictions should be very good.
• D)This is not a significant regression at any customary level of α.

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Definitions:

Price Elasticity of Demand

A measure of the sensitivity of quantity demanded of a good to a change in its price.

Demand Curve

The graphical representation that illustrates the quantity of a particular good or service that consumers are willing and able to purchase at various price points.

Vertical Demand Curve

A vertical demand curve is a theoretical representation where the quantity demanded is completely insensitive to price changes, indicating that consumers are willing to buy the same amount regardless of the price.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price, income, or other factors.