Consider the Following Sample Regression Equation = 150 -

question 92

Multiple Choice

Consider the following sample regression equation = 150 - 20x,where y is the demand for Product A (in 1,000s) and x is the price of the product (in $) .The slope coefficient indicates that if ______________.

• A) the price of Product A increases by $1,then on average,demand decreases by 20
• B) the price of Product A increases by $1,then on average,demand increases by 20
• C) the price of Product A increases by $1,then on average,demand decreases by 20,000
• D) the price of Product A increases by $1,then on average,demand increases by 20,000

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Definitions:

Lower-middle Class

Refers to a social group that is between the working class and the middle class, often characterized by moderate income levels, some post-secondary education, and white-collar or skilled blue-collar jobs.

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.

Upper Class

An elite and largely self-sustaining group who possess most of the country’s wealth; they constitute about 1 percent of the U.S. population.

Caste System

A form of social stratification in which status is determined by one’s family history and background and cannot be changed.