A government agency is interested in developing the most accurate forecast for the poverty rate in the United States and decides to perform regression analyses using a combination of the following independent variables: the percent of women in the labor force and the percent of the population that is uninsured. The agency collects data from all 50 U.S. states but is unsure whether both variables should be in the model. The agency runs three regressions:
Regression A. Poverty Rate = a + b1*(Percent of women in the labor force) + b2*(Percent uninsured)
Regression B. Poverty Rate = a + b*(Percent of women in the labor force)
Regression C. Poverty Rate = a + b*(Percent uninsured)

The regression statistics for all three regressions are given below. Based on these statistics, which model should the agency use to obtain the MOST accurate forecast?

• A.Regression C
• B.Regression A
• C.Regressions A and B provide equally accurate forecasts
• D.Regression B

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Topic 1, Business Analytic
Exhibit:

Based on the scatterplot below, which of the following correlation coefficients BEST describes the relationship between undergraduate GPA and beginning annual salary?

• A.0.2
• B.-0.9
• C.-0.2
• D.0.9

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An individual has recently inherited an antique car and decides to sell it via an auction. When the seller brings the car to an auctioning service, the auctioneer asks if it should be sold via an English (open outcry) auction, a Vickrey (sealed second-price) auction, or a sealed first-price auction. Which type of auction will result in the highest sale price?

• A.All three auctions types result in the same sale price
• B.A sealed first-price auction
• C.A Vickrey or an English auction, both of which will result in the same sale price
• D.An English auction

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Based on the multiple regression output below, choose the variable with the highest level of significance.

• A.Intercept
• B.X Variable 3
• C.X Variable 9
• D.X Variable 5

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A hurricane has recently destroyed a major oil supplier's oil rig located in the Gulf of Mexico. If price elasticity of demand for oil is 0, what effect would the hurricane have on the short-term market for oil?

• A.The oil producer would be willing to supply less oil at any price.
• B.New producers would enter the market to provide the oil that was lost.
• C.Other oil producers would decrease their prices.
• D.Consumers would reduce their oil consumption.

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