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:

Purely Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price takers rather than price makers.

Imperfectly Competitive

Describes a market structure where firms have some degree of market power and can influence prices, unlike in perfect competition.

Purely Competitive

A market structure characterized by a large number of small firms, homogenous products, and easy entry and exit, leading to firms being price takers.

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of the resource demanded by employers.