A multiple regression was conducted to predict the price of yachts in thousands of dollars. A dummy variable was included to indicate whether or not the yacht has a flying bridge, where 0 means "no" and 1 means "yes." Which of the following statements is correct using the 0.10 level of significance?
A) Having a flying bridge significantly increases the price of a yacht by an average of $17.7, given the other variables present.
B) Having a flying bridge significantly increases the price of a yacht by an average of $17,708, given the other variables present.
C) We can tell that 17 out of 20 yachts have a flying bridge.
D) Whether or not the yacht has a flying bridge does not significantly affect the price of a yacht, given the other variables present.

Question

A multiple regression was conducted to predict the price of yachts in thousands of dollars. A dummy variable was included to indicate whether or not the yacht has a flying bridge, where 0 means "no" and 1 means "yes."  Which of the following statements is correct using the 0.10 level of significance?
A) Having a flying bridge significantly increases the price of a yacht by an average of $17.7, given the other variables present. 
B) Having a flying bridge significantly increases the price of a yacht by an average of $17,708, given the other variables present. 
C) We can tell that 17 out of 20 yachts have a flying bridge. 
D) Whether or not the yacht has a flying bridge does not significantly affect the price of a yacht, given the other variables present.

Quizplus · Accepted Answer

The Answer of A multiple regression was conducted to predict the price of yachts in thousands of dollars. A dummy variable was included to indicate whether or not the yacht has a flying bridge, where 0 means "no" and 1 means "yes."  Which of the following statements is correct using the 0.10 level of significance?
A) Having a flying bridge significantly increases the price of a yacht by an average of $17.7, given the other variables present. 
B) Having a flying bridge significantly increases the price of a yacht by an average of $17,708, given the other variables present. 
C) We can tell that 17 out of 20 yachts have a flying bridge. 
D) Whether or not the yacht has a flying bridge does not significantly affect the price of a yacht, given the other variables present.

A Multiple Regression Was Conducted to Predict the Price of Yachts