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Foundations of Macroeconomics 8th Edition by Robin Bade Test bank

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23) Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hours a week Jamie studies
a.   Plot the relationship in the figure, putting the hours studied on the horizontal axis.

b. Is the relationship you plotted positive or negative?
c. What happens to the slope of the relationship as hours studied increase?
d. Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure.
e. How many variables are involved in the figure you just completed?
Answer: 

a. The figure above plots the relationship between the number of hours Jamie studies and his SAT score.
b. The relationship is positive: As Jamie increases the hours he studies, his SAT score increases.
c. The relationship is nonlinear, so the slope of the relationship changes as the number of hours studied changes. In the figure, the slope of the relationship decreases in size as the number of hours studied increases.
d. The figure above also plots the relationship between the hours Jamie studies and his SAT score if Jamie takes an SAT preparation course.
e. There are three variables: The number of hours Jamie studies, whether or not he takes an SAT preparation course, and his SAT score.
Topic:  Relationships among more than two variables
Skill:  Level 3: Using models
Section:  Chapter 1 Appendix - Checkpoint 4
Status:  Old
AACSB:  Analytic skills

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