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A Collector of Grandfather Clocks Believes That the Price Received (y( y

Question 86

Multiple Choice

A collector of grandfather clocks believes that the price received for the clocks at an auction increases with the number of bidders, but at an increasing (rather than a constant) rate. Thus, the model proposed to best explain auction price (y( y , in dollars) by number of bidders (x) ( x ) is the quadratic model
E(y) =β0+β1x+β2x2E ( y ) = \beta _ { 0 } + \beta _ { 1 } x + \beta _ { 2 } x ^ { 2 }
This model was fit to data collected for a sample of 32 clocks sold at auction; a portion of the printout follows:

 SOURCE  DF  SS  MS  FVALUE  PROB > F  MODEL 242771602138579120.0005 ERROR 2951403417725 TOTAL 314791194\begin{array}{lrrrrr}\hline \text { SOURCE } & \text { DF } & \text { SS } & \text { MS } & \text { FVALUE } & \text { PROB }>\text { F } \\\text { MODEL } & 2 & 4277160 & 2138579 & 120 & .0005 \\\text { ERROR } & 29 & 514034 & 17725 & & \\\text { TOTAL } & 31 & 4791194 & & &\end{array}

 ROOT MSE 133 R-SQUARE 893 DEP MEAN 1327 ADJ R-SQ .885\begin{array}{lcll}\text { ROOT MSE } & 133 & \text { R-SQUARE } & 893 \\\text { DEP MEAN } & 1327 & \text { ADJ R-SQ } & .885\end{array}

PARAMETER STANDARDT FOR 0:VARIABLES ESTIMATE  ERROR  PARAMETER =0 PROB >T\begin{array} { l l l l } & \text {PARAMETER }& \text {STANDARD}& \text {T FOR 0:}\\ \text {VARIABLES}&\text { ESTIMATE } & \text { ERROR } & \text { PARAMETER } = 0 & \text { PROB } > | T | \end{array}


 INTERCEPT 286.429.6629.64.0001X.31.065.14.0016XX.000067.000070.95.3600\begin{array} { l r r r r } \text { INTERCEPT } & 286.42 & 9.66 & 29.64 & .0001 \\\mathrm { X } & .31 & .06 & 5.14 & .0016 \\\mathrm { X } \cdot \mathrm { X } & - .000067 & .00007 & - 0.95 & .3600 \\\hline\end{array}

An outlier for the model is a clock with a residual that _____in absolute value. (Fill in the blank.)


A) exceeds 133
B) exceeds .893
C) is less than 266
D) exceeds 399

Correct Answer:

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