A Researcher Is Investigating Variables That Might Be Associated with the Academic

question 42

Multiple Choice

A researcher is investigating variables that might be associated with the academic performance of high school students.She examined data from 1990 for each of the 50 states plus Washington,DC.The data included information on the following variables. As part of her investigation,she ran the multiple regression model SATM = ₀ + ₁($ per pupil) + ₂(% taking) + _i,
Where the deviations _i were assumed to be independent and Normally distributed with a mean of 0 and a standard deviation of .This model was fit to the data using the method of least squares.The following results were obtained from statistical software. What proportion of the variation in the variable SATM is explained by the explanatory variables $ per pupil and % taking?

• A)0.232
• B)0.301
• C)0.768
• D)0.960

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Definitions:

Administrative Fee

A charge by an institution or business for administrative costs, often added to transactions, memberships, or services.

Monopolized Labor Market

A labor market where a single employer significantly controls the market for jobs and wages.

Equilibrium Wage

The wage rate that balances the quantity of labor supplied and the quantity of labor demanded in a labor market.

Marginal Product

The additional output generated by employing one more unit of a specific factor of production, holding other factors constant.