A Random Sample of 79 Companies from the Forbes 500

question 88

Multiple Choice

A random sample of 79 companies from the Forbes 500 list (which actually consists of nearly 800 companies) was selected,and the relationship between sales (in hundreds of thousands of dollars) and profits (in hundreds of thousands of dollars) was investigated by regression.The following results were obtained from statistical software. What is an approximate 90% confidence interval for the slope ₁?

• A)-0.09 ± 0.0075
• B)-0.09 ± 0.0125
• C)0.09 ± 0.0075
• D)0.09 ± 0.0125

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Definitions:

Price Discrimination

occurs when a seller charges different prices to different buyers for goods of like grade and quality, without justification.

Discriminatory Price

A pricing strategy where different prices are charged for the same product or service in different markets or to different segments of consumers without a corresponding difference in cost.

Clayton Act

An antitrust law in the United States that prohibits certain actions leading to anti-competitiveness, such as price discrimination and exclusive deals.

Mobile-Network Operator

A company that provides wireless communications services to mobile phone subscribers.