A Researcher Analyzes the Factors That May Influence Amusement Park

question 41

Multiple Choice

A researcher analyzes the factors that may influence amusement park attendance and estimates the following model: Attendance = β₀ + β₁ Price + β₂ Rides + ε,where Attendance is the daily attendance (in 1,000s) ,Price is the gate price (in $) ,and Rides is the number of rides at the amusement park.The researcher would like to construct interval estimates for Attendance when Price and Rides equal $85 and 30,respectively.The researcher estimates a modified model where Attendance is the response variable and the explanatory variables are now defined as Price* = Price - 85 and Rides* = Rides - 30.A portion of the regression results is shown in the accompanying table. According to the modified model,which of the following is a 95% prediction interval for Attendance when Price and Rides equal $85 and 30,respectively? (Note that t_0.025,27 = 2.052. )

• A) [12,740,56,080]
• B) [16,330,53,450]
• C) [26,080,42,740]
• D) [28,900,41,500]

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Definitions:

Ending Balance

The amount of money remaining in an account at the end of an accounting period, after all transactions have been accounted for.

Average Balance

The average balance is a calculation to determine the average amount in an account over a specific time period, often used to assess account fees or for financial requirements.

Earnings Per Share

Earnings per share (EPS) is a financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Common Stock

Equity securities that represent ownership in a corporation, providing shareholders with voting rights and potentially dividends.