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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 134 times)

Zulu123

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on: Feb 14, 2020

Question 1

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

E(y) = β0 + β1x + β2x2


This model was fit to data collected for a sample of 32 clocks sold at auction; a portion of the printout follows:


Give the p-value for testing H0: β2 = 0 against Ha: β2 ≠ 0.
◦ .05
◦ .0016
◦ .18
◦ .36

Question 2

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.

If the experts are correct in their assumptions about the relationship between price and demand, which of the following should be true?
◦ β2 < 0
◦ β1 > 0
◦ β2 > 0
◦ β1 < 0
Statistics ¦ McClave, Sincich, Tamarack ¦ 12th Edition
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Marked as best answer by Zulu123 on Feb 14, 2020

joewallace

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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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Zulu123

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Reply 2 on: Feb 14, 2020
YES! Correct, THANKS for helping me on my review

kswal303

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Reply 3 on: Yesterday
Excellent

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