A Researcher Analyzes the Factors That May Influence Amusement Park

question 60

Multiple Choice

A researcher analyzes the factors that may influence amusement park attendance.She estimates the following model: Attendance = β₀ + β₁ Price + β₂ Temperature + β₃ Rides + ε,whereAttendance is the daily attendance (in 1,000s) ,Price is the gate price (in $) ,Temperature is the average daily temperature (in ^oF) ,and Rides is the number of rides at the amusement park.A portion of the regression results is shown in the accompanying table. Which of the following are the hypotheses to test if the explanatory variables Temperature and Rides are jointly significant in explaining Attendance?

• A) H₀:β₂ = β₃ = 0;H_A: At least one of the coefficients is nonzero.
• B) H₀:β₂ = β₃ = 0;H_A: At least one of the coefficients is zero.
• C) H₀:β₀ = β₁ = 0;H_A: At least one of the coefficients is nonzero.
• D) H₀:β₀ = β₁ = 0;H_A: At least one of the coefficients is zero.

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Definitions:

Express Authority

Explicit permission given by a principal to an agent to act on their behalf.

Advance Payment

A prepayment made before the actual due date or before receiving the goods or services it is meant for.

Terminated Agency

The end of a legal relationship between a principal and an agent, where the agent can no longer act on behalf of the principal.

Secured Lending

A loan or extension of credit where the borrower pledges an asset as collateral to ensure repayment, reducing the risk for the lender.