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Author Question: A certain type of rare gem serves as a status symbol for many of its owners. In theory, for low ... (Read 350 times)

frankwu

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on: Feb 14, 2020
A certain type of rare gem serves as a status symbol for many of its owners. In theory, for low prices, the demand decreases as the price of the gem increases. However, experts hypothesize that when the gem is valued at very high prices, the demand increases with price due to the status the owners believe they gain by obtaining the gem. Thus, the model proposed to best explain the demand for the gem by its price is the quadratic model

E(y) = β0 + β1x + β2x2

where y = Demand (in thousands) and x = Retail price per carat (dollars).

This model was fit to data collected for a sample of 12 rare gems.



Does there appear to be upward curvature in the response curve relating y (demand) to x (retail price)?
◦ No, since the value of β2 is near 0.
◦ Yes, since the p-value for the test is less than .01.
◦ Yes, since the value of β2 is positive.
◦ No, since the p-value for the test is greater than .10.
Statistics ¦ McClave, Sincich, Tamarack ¦ 12th Edition
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Marked as best answer by frankwu on Feb 14, 2020

Melissahxx

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Reply #1 on: Feb 14, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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EJ Yang

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Reply #2 on: Oct 21, 2020
thank you
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