1 of 2Question1For questions 1-4, use the diagram below:Not yet answeredMarked out of1.00At an activity level of 100,Select one:a. MB <> MCd. TC > TBQuestion2Not yet answeredMarked out of1.00Refer to the diagram above:An activity level of 350 is associated withSelect one:a. Breaking even, where total benefit equals total cost. This is the optimal choice of activity level.b. MC > MB, and so the optimal level of the activity is therefore too low. More of the activity should bepursued; doing so will equate MC and MB.c. the maximum amount of total benefit, and net benefit as well.d. Total benefit equals total cost, but the amount of the activity is too high. The optimal choice is belowthe break-even point.Module Two: Self-Assessment2 of 2Question3Answer savedMarked out of1.00Refer to the diagram above:At levels of the activity beyond 500,Select one:a. MC exceeds MB, but TB is still rising.b. TB is negative immediately after A = 500.c. There are no costs since the TC line stops before A = 400.d. MB is negative.Question4Answer savedMarked out of1.00Refer to the diagram above:The optimal choice of activity level is approximatelySelect one:a. 200, where TB and TC are parallel.b. It is impossible to tell in this particular graph.c. 350, where TB and TC intersect.d. 50, where the slopes of TB and TC are the furthest apart.1 of 1Question5Not yet answeredMarked out of1.00Question6Not yet answeredMarked out of1.00The table below gives total output of an employee of XYZ Corporation, which produces the ever-popularWhatzit. The "Total output" column tells you the running total of Whatzit’s produced throughout the day.Hours worked per dayTotal output5606757908100910810113The 6th hour of work yields a marginal output (MB) ofAnswer:Refer to the table above:Which of the following statements is true about this employee’s Whatzit productivity?Select one:a. Total output and marginal output are both increasing through 10 hours of work.b. Total output is increasing through 10 hours of work, but marginal output decreases after the 6th hour.c. Total output is positive but marginal output is negative.d. Marginal output exceeds total output for hours 6 through 10.Module Two: Self-Assessment1 of 2Question7Use the following equations for the questions below:Not yet answeredA = 75B – 200Marked out of1.00E = 900G = 20H + 2.4H^2 – 0.01H^3L = 15M – 850N + 0.4M^2 + 22PdA/dB = ?Select one:a. 75B – 1b. 75c. 75Bd. -125Question8Not yet answeredMarked out of1.00Use the above equations:dE/dF = ?Select one:a. 900b. 0c. F^1d. 900FQuestion9Not yet answeredMarked out of1.00Use the equations above:dG/dH = ?Select one:a. 20H + 4.8H + 0.03H^3b. 20Hc. 20 + 2.4H – 0.01H^2d. 20 + 4.8H -0.03H^25/22/2016 6:53 PM2 of 2Question10Not yet answeredMarked out of1.00Use the equations above:dL/dM = ?Select one:a. 15M + 0.4M^2b. -850N + 22Pc. 15 + 0.8Md. 15 – 850 + 0.8M + 225/22/2016 6:53 PM1 of 2Question11Not yet answeredMarked out of1.00Which of the following statements about regression analysis is NOT correct?Select one:a. It provides estimates of the relationships between dependent and independent variables, as well asmeasures of statistical fit or confidence.b. It can be used to predict values of a dependent variable using one or more15independent16 i 17 variables.18 19 2c. With the same set of data and same choice of dependent and independentFinishvariables,it willattempt… yielddifferent values for parameter estimates and test statistics each time a regression is run.d. It attempts to find parameter values such that the difference between observed and predicted (orestimated) values is minimized.12Not yet answeredYou believe that variable X directly (positively) affects the value of variable Y. After running a regression, theparameter estimate of X is +0.49 and the t-statistic is 0.03. You would thus conclude thatMarked out of1.00Select one:Questiona. The parameter has the expected sign but is statistically insignificant; therefore you cannot rule out thepossibility that X has no discernible effect on Y.b. The parameter has the correct sign and is statistically significant.c. While statistically significant, the parameter has an unexpected sign. The X variable should be discardedfrom the regression model and re-run.d. Since the t-statistic is less than the parameter value, the relationship between X and Y is actuallynegative or inversely related.13Not yet answeredA low p-value for an independent variable (say, 0.04) indicates that the parameter estimate is not statisticallysignificant; the variable should be discarded from future regression models.Marked out of1.00Select one:QuestionTrueFalseModule Two: Self-Assessment2 of 214Not yet answeredAssume you run a regression on two different models (sets of independent variables). The first model resultsin an R^2 of 0.60 and the second model results in an R^2 of 0.64. This would mean thatMarked out of1.00Select one:Questiona. The second model is unambiguously better; since R^2 signifies the explanatory power of the entiremodel, the second model’s other results (expected signs, t-stats/p-values) are not as important. The firstmodel should be seen as inferior.b. The second model has higher overall explanatory power, but whether it is a "better" model than the firsmodel depends on other factors too (expected signs of the coefficients, significant t-stats/p-values, etc.).c. The second model has better overall explanatory power, but a better R^2 is only gained at the expenseof other factors. The first model is better at explaining individual coefficient estimates than the second.d. The independent variables in the first model are not statistically significant, despite what the t-statsand p-values suggest.1 of 1Question15Not yet answeredMarked out of1.00If you ran a regression using data on many different used car sales, and had selling price as the dependentvariable, the expected sign on the variable "mileage" (how many miles the car had been driven) would benegative.Select one:TrueFalseQuestion16Not yet answeredMarked out of1.00If you ran a regression using data on many different used car sales, and had selling price as the dependentvariable, the expected sign on the variable "sound" (a dummy variable representing whether the car hasupgraded speakers, 1 = upgraded and 0 = standard) would be negative.Select one:TrueFalse1 of 2InformationThe following are regression results where Car Price is the dependent variable:Car Price is measured in dollars. The independent variables are:Mileage: number of miles the car has been drivenCylinder: number of cylinders in the engineLiter: a more specific measure of engine sizeDoors: number of doorsCruise: dummy variable representing whether the car has cruise control (1 = cruise, 0 = no cruise)Sound: dummy variable representing whether the car has upgraded speakers (1 = upgraded, 0 =standard)Leather: dummy variable representing whether the car has leather seats (1 = leather, 0 = cloth)17Not yet answeredThis model (set of independent variables) explains approximately how much of the variation in car prices inthis dataset?Marked out of1.00Select one:Questiona. 44.6%b. 44.1%c. 1 – 0.441 = 55.9%d. 80.4%Question18Not yet answeredMarked out of1.00What is true about the estimated coefficients?Select one:a. The "Mileage" coefficient is unexpectedly negative, since higher miles driven should be associated witha higher selling price.b. The "Mileage" coefficient is unexpectedly small compared to the others, suggesting that miles driven isunimportant in the selling price of a used car.c. The "Sound" coefficient is unexpectedly negative, suggesting that cars with upgraded speakers areassociated with a lower selling price.d. The negative "Door" coefficient indicates that more doors on a car reduce the car’s mileage.5/22/2016 6:55 PMModule Two: Self-Assessment2 of 2Question19Not yet answeredMarked out of1.00https://moodle.lsus.edu/mod/quiz/attempt.php?attempt=129082&page=5The results from the t-statistics and p-values suggests thatSelect one:a. Mileage, Liter, Doors, and Sound are all insignificant since the t-stats are negative.b. "Liter" is the only statistically significant estimate since it’s p-value is 36.4%.c. Only the coefficient for "Liter" is statistically insignificant. All of the other coefficients are statisticallysignificant at the 1% level.d. Mileage, Cylinder, Doors, Cruise, and Leather are all insignificant since the p-values are zero, meaningunrelated to car price.Question20Not yet answeredMarked out of1.00Which of the following statements is correct, based on the regression results above?Select one:a. Every additional mile driven increases the price of the car by $0.17b. Having four doors instead of two is associated with more than a $3,000 lower price, everything elseequal.c. Cars with cruise control have a about 6,300 fewer miles on them than cars without cruise control,everything else equal.d. Since the "Liter" coefficient is insignificant, the true effect is actually +787.22 and not -787.22