A collector of grandfather clocks believes that the price received for the clocks at an auction increases with the number of bidders, but at an increasing (rather than a constant) rate. Thus, the
Model proposed to best explain auction price (y, in dollars) by number of bidders (x) is the
Quadratic model
This model was fit to data collected for a sample of 32 clocks sold at auction.
Suppose the -value for the test of is . What is the proper conclusion?
A) There is evidence (at ) of downward curvature in the relationship between auction price and number of bidders .
B) Reject at ; the model is not useful for predicting auction price .
C) There is evidence (at ) of upward curvature in the relationship between auction price and number of bidders .
D) There is no evidence (at ) of upward curvature in the relationship between auction price and number of bidders .
Correct Answer:
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