A technology company normally sees increased revenues for its cell phones when it raises
prices. However, when the company released an updated version of the phone and charged a higher price, revenues fell. What MOST likely happened to the cell phone market?

• A.The price for cell phone plans decreased.
• B.The price of land line phones increased significantly.
• C.Profits earned by the company's suppliers rose.
• D.There was an increase in the number of substitute phones.

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Which of the following situations requires dummy variables to be used in the regression model?

• A.A study to examine the relationship between stock prices and interest rates on company revenue
• B.A study to examine the relationship between the season and amount of water pollution on the number of sea-turtles
• C.A study to examine the relationship between age and weight on the probability of breast cancer
• D.A study to examine the relationship between average salary and age of buyer on the amount spent on housing

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After a year of reduced profits, a commuter rail service has decided to charge a premium for peak hour users. In a media statement released to the public, the rail service company claimed that consumers will benefit from this decision. In what way could consumers benefit from this pricing structure?

• A.The pricing will allow the rail service to continue to serve consumers with lower willingness to pay.
• B.The price change makes it more likely that competitors will enter the market.
• C.On average, consumers will have a greater share of the value created by the rail service after the price change.
• D.The pricing structure will increase congestion during peak hours.

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