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THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Question 24

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β0 + β1X1 + β2X2 + β3X3 + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X1 is the number of loans,X2 is the interest rate,and X3 is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X<sub>1</sub><sub> </sub>is the number of loans,X<sub>2</sub> is the interest rate,and X<sub>3</sub> is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: = 5.7 + 0.189x<sub>1</sub> - 1.3x<sub>2</sub> + 0.08x<sub>3</sub>, = 3.2, = 0.03, = 0.062, = 0.17,R<sup>2</sup><sup> </sup>= 0.46,and adjusted = 0.41. -What should the null and alternative hypotheses be for β<sub>3</sub>? A) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>> 0 B) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>< 0 C) H<sub>0</sub> : β<sub>3</sub><sub> </sub>≠ 0,<sub> </sub>H<sub>1</sub> :<sub> </sub>β<sub>3</sub><sub> </sub>= 0 D) H<sub>0</sub> : β<sub>3</sub><sub> </sub>> 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>≠ 0
= 5.7 + 0.189x1 - 1.3x2 + 0.08x3, THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X<sub>1</sub><sub> </sub>is the number of loans,X<sub>2</sub> is the interest rate,and X<sub>3</sub> is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: = 5.7 + 0.189x<sub>1</sub> - 1.3x<sub>2</sub> + 0.08x<sub>3</sub>, = 3.2, = 0.03, = 0.062, = 0.17,R<sup>2</sup><sup> </sup>= 0.46,and adjusted = 0.41. -What should the null and alternative hypotheses be for β<sub>3</sub>? A) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>> 0 B) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>< 0 C) H<sub>0</sub> : β<sub>3</sub><sub> </sub>≠ 0,<sub> </sub>H<sub>1</sub> :<sub> </sub>β<sub>3</sub><sub> </sub>= 0 D) H<sub>0</sub> : β<sub>3</sub><sub> </sub>> 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>≠ 0
= 3.2, THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X<sub>1</sub><sub> </sub>is the number of loans,X<sub>2</sub> is the interest rate,and X<sub>3</sub> is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: = 5.7 + 0.189x<sub>1</sub> - 1.3x<sub>2</sub> + 0.08x<sub>3</sub>, = 3.2, = 0.03, = 0.062, = 0.17,R<sup>2</sup><sup> </sup>= 0.46,and adjusted = 0.41. -What should the null and alternative hypotheses be for β<sub>3</sub>? A) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>> 0 B) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>< 0 C) H<sub>0</sub> : β<sub>3</sub><sub> </sub>≠ 0,<sub> </sub>H<sub>1</sub> :<sub> </sub>β<sub>3</sub><sub> </sub>= 0 D) H<sub>0</sub> : β<sub>3</sub><sub> </sub>> 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>≠ 0
= 0.03, THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X<sub>1</sub><sub> </sub>is the number of loans,X<sub>2</sub> is the interest rate,and X<sub>3</sub> is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: = 5.7 + 0.189x<sub>1</sub> - 1.3x<sub>2</sub> + 0.08x<sub>3</sub>, = 3.2, = 0.03, = 0.062, = 0.17,R<sup>2</sup><sup> </sup>= 0.46,and adjusted = 0.41. -What should the null and alternative hypotheses be for β<sub>3</sub>? A) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>> 0 B) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>< 0 C) H<sub>0</sub> : β<sub>3</sub><sub> </sub>≠ 0,<sub> </sub>H<sub>1</sub> :<sub> </sub>β<sub>3</sub><sub> </sub>= 0 D) H<sub>0</sub> : β<sub>3</sub><sub> </sub>> 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>≠ 0
= 0.062, THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X<sub>1</sub><sub> </sub>is the number of loans,X<sub>2</sub> is the interest rate,and X<sub>3</sub> is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: = 5.7 + 0.189x<sub>1</sub> - 1.3x<sub>2</sub> + 0.08x<sub>3</sub>, = 3.2, = 0.03, = 0.062, = 0.17,R<sup>2</sup><sup> </sup>= 0.46,and adjusted = 0.41. -What should the null and alternative hypotheses be for β<sub>3</sub>? A) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>> 0 B) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>< 0 C) H<sub>0</sub> : β<sub>3</sub><sub> </sub>≠ 0,<sub> </sub>H<sub>1</sub> :<sub> </sub>β<sub>3</sub><sub> </sub>= 0 D) H<sub>0</sub> : β<sub>3</sub><sub> </sub>> 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>≠ 0
= 0.17,R2 = 0.46,and adjusted THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = β<sub>0</sub> + β<sub>1</sub>X<sub>1</sub> + β<sub>2</sub>X<sub>2</sub> + β<sub>3</sub>X<sub>3</sub> + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars) ,X<sub>1</sub><sub> </sub>is the number of loans,X<sub>2</sub> is the interest rate,and X<sub>3</sub> is the dollar value of expenditures of the bank on advertising (in thousands of dollars) .Using data from the past 24 months,she obtained the following results: = 5.7 + 0.189x<sub>1</sub> - 1.3x<sub>2</sub> + 0.08x<sub>3</sub>, = 3.2, = 0.03, = 0.062, = 0.17,R<sup>2</sup><sup> </sup>= 0.46,and adjusted = 0.41. -What should the null and alternative hypotheses be for β<sub>3</sub>? A) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>> 0 B) H<sub>0</sub> : β<sub>3</sub><sub> </sub>= 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>< 0 C) H<sub>0</sub> : β<sub>3</sub><sub> </sub>≠ 0,<sub> </sub>H<sub>1</sub> :<sub> </sub>β<sub>3</sub><sub> </sub>= 0 D) H<sub>0</sub> : β<sub>3</sub><sub> </sub>> 0,<sub> </sub>H<sub>1</sub><sub> </sub>:<sub> </sub>β<sub>3</sub><sub> </sub>≠ 0
= 0.41.
-What should the null and alternative hypotheses be for β3?


A) H0 : β3 = 0, H1 : β3 > 0
B) H0 : β3 = 0, H1 : β3 < 0
C) H0 : β3 ≠ 0, H1 : β3 = 0
D) H0 : β3 > 0, H1 : β3 ≠ 0

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