A group of season ticket holders wants to forecast attendance at National Football League (NFL) games for the upcoming season. One ticket holder argues that using the population of the United States as the only independent variable would explain as much as using both the United States population and the percent change in disposable income (per capita) as independent variables. Another ticket holder argues that using the percent change in disposable income (per capita) asthe only independent variable would provide the most accurate forecast. Listed below are the Adjusted R2 values for three regression models. Based on these values, and keeping in mind that the ticket holders are only concerned about forecasting, what is the correct conclusion?
- NFL Attendance vs. US Population and Percent Change in Disposable Income.
Adjusted R2= 0.8964 - NFL Attendance vs. US Population: Adjusted R2= 0.8609 - NFL Attendance vs. Percent Change in Disposable Income. Adjusted R2= -0.0244

• A.The Adjusted R2 of NFL Attendance vs. US Population is higher than that of NFL Attendance vs. Percent Change in Disposable Income, so US Population should be the only independent variable in the regression model.
• B.The Adjusted R2 of NFL Attendance vs. US Population and Percent Change in Disposable Income is higher than that of either single variable regression model, so both US Population and Percent Change in Disposable Income should be included in the regression model.
• C.There is not any information regarding the p-values of the independent variables, so it is impossible to determine the explanatory power of the regression models.
• D.The Adjusted R2 of NFL Attendance vs. Percent Change in Disposable Income is negative, so Percent Change in Disposable Income should be excluded from any regression model.

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Company B has the following summarized Statement of Cash Flows for the year. Company B is MOST likely in what stage of the business life-cycle?

• A.Start-up - fast growing
• B.Mature - no growth
• C.Declining - shrinking
• D.Profitable - moderate growth

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A manager at an internet retailer wants to determine whether a recent change in the company's supply chain strategy has affected the amount of time it takes for an order to reach a customer. The historical average amount of time from placing the order to final delivery is 5.2 days. A random sample of 60 orders taken after the implementation of the new strategy indicates an average delivery time of 4.5 days with a standard deviation of 1.4 days. The manager wishes to perform a hypothesis test at a 95% confidence level. Which option represents the correct calculation for the range of likely sample means? Please note that the function for confidence intervals in Excel is =CONFIDENCE.NORM(alpha, standard_dev, size).

• A.=4.5 +- CONFIDENCE.NORM(0.025,1.4,60)
• B.=5.2 +- CONFIDENCE.NORM(0.025,1.4,60)
• C.=5.2 +- CONFIDENCE.NORM(0.05,1.4,60)
• D.=4.5 +- CONFIDENCE.NORM(0.05,1.4,60)

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Which of the following industries has the MOST competitors?

• A.An industry with high barriers to entry
• B.An industry with high fixed costs
• C.An industry with a high degree of vertical differentiation
• D.An industry with a high degree of horizontal differentiation

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A company believes a "low-cost" strategy would help increase revenues. The company lowers the price of its product but actually sees a decrease in revenues. What information could explain this result?

• A.The company's product is not perceived as a necessity.
• B.The market is in an economic boom.
• C.The company failed to cut costs significantly.
• D.The demand for the product is relatively inelastic.

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