Exhibit 13-3
in a Regression Model Involving 30 Observations, the Following

question 64

Multiple Choice

Exhibit 13-3
In a regression model involving 30 observations, the following estimated regression equation was obtained:
$\hat { Y }$ =17+4X1 - 3X2+8X3+8X4
For this model SSR = 700 and SSE = 100.
-Refer to Exhibit 13-3. The critical F value at 95% confidence is

• A) 2.53
• B) 2.69
• C) 2.76
• D) 2.99

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Definitions:

Substitution Effect

The change in consumption resulting from a change in the relative prices of goods, prompting consumers to replace more expensive items with less costly alternatives.

Income Effect

The shift in income for an individual or the economy, and its influence on the demand for a specific good or service.

Wages Increase

The act or occurrence of raising the amount of money that workers are paid for their labor.

Consumer's Optimal

The point at which an individual achieves the best possible satisfaction or utility from the consumption of goods and services, given their budget constraints.