b. reflect extremes of behavior.
c. reflect the order in which events occurred over time.
d. reflect striking features.
e. all of the above are useful types of cases.
Consider the regression equation Y = 5 + 16X1 + 38X2 relating annual expenditures on
a particular product Y to X1 and X2, where
X1 X2
‘‘If a person belongs to lower class 0 0
‘‘If a person belongs to middle class 1 0
‘‘If a person belongs to upper class 0 1
Which of the following is FALSE? The equation suggests:
a. An upper class person could be expected on the average to spend $38 per year more
than a lower class person on the product.
b. A middle class person could be expected on the average to spend $16 more per year
on the product than a lower class person.
c. A lower class person could be expected on the average to spend $5 per year on the
product.
d. An upper class person could be expected on the average to spend $22 more per year
on the product than a middle class person.
e. An upper class person could be expected on the average to spend $38 per year on the
product.