Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA17-BA1-1 Topic 2 Question 111 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 111
Topic #: 2
[All CIMAPRA17-BA1-1 Questions]

A research business compiles the following data for Country D over 8 years:

* Household expenditure, y (in millions of constant 20X6 dollars);

* The number of fixed broadband internet subscribers, x (in thousands).

Based on this information the following regression model is developed:

y = 332668 * 45.8x - 0 003x2

Which of the following statements is correct?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Selene at May 05, 2025, 02:34 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Lemuel
1 months ago
That's true, but the model itself shows a non-linear relationship, so I think C is the best answer.
upvoted 0 times
...
Earleen
1 months ago
But isn't statement B also correct? A 1 percent increase in subscribers leads to a 0.3 percent increase in expenditure.
upvoted 0 times
...
Dwight
1 months ago
Haha, Option A is a classic. Of course the model is based on historical data - what else would it be based on, the future??
upvoted 0 times
Mabelle
28 days ago
Yeah, it's common sense that a model is based on historical data.
upvoted 0 times
...
Leonardo
29 days ago
I agree, Option A is pretty obvious.
upvoted 0 times
...
...
Iola
2 months ago
I agree with Lemuel, the model suggests a non-linear relationship.
upvoted 0 times
...
Lemuel
2 months ago
I think the correct statement is C.
upvoted 0 times
...
Hildegarde
2 months ago
Option D is definitely not correct. Applying a model developed for one country to 'most countries and regions' is a recipe for disaster. Someone needs to brush up on their econometrics!
upvoted 0 times
Maurine
30 days ago
C: The model seems to suggest a non-linear relationship between household expenditure and the number of broadband subscribers.
upvoted 0 times
...
Elliott
1 months ago
B: I agree, it's important to consider the specific characteristics of each country before applying a model.
upvoted 0 times
...
Alecia
1 months ago
A: Option D is definitely not correct. Applying a model developed for one country to 'most countries and regions' is a recipe for disaster.
upvoted 0 times
...
...
Florinda
2 months ago
I'm not so sure about option B. A 1% increase in broadband subscribers leading to a 0.3% increase in household expenditure seems a bit too precise. I'd be cautious about relying on that specific percentage change.
upvoted 0 times
Keneth
1 months ago
I think it's important to consider other factors that could influence household expenditure as well.
upvoted 0 times
...
Denny
1 months ago
Yeah, it's always good to be cautious with these types of predictions.
upvoted 0 times
...
Daniel
2 months ago
I agree, it does seem like a very precise estimate.
upvoted 0 times
...
...
Kimberely
2 months ago
I agree with Yoko. The quadratic term in the regression equation suggests a non-linear relationship. This is an important consideration when using the model for forecasting.
upvoted 0 times
Lashon
1 months ago
A: Definitely. It shows that the relationship between household expenditure and broadband subscribers is not linear.
upvoted 0 times
...
Reuben
1 months ago
B: I agree. It's important to consider this when using the model for forecasting.
upvoted 0 times
...
Gladis
2 months ago
A: I think option C is correct. The quadratic term in the regression equation suggests a non-linear relationship.
upvoted 0 times
...
...
Yoko
3 months ago
Option C seems to be the correct choice. The model indicates a non-linear relationship between household expenditure and broadband subscribers, which makes sense intuitively.
upvoted 0 times
Bette
1 months ago
Definitely. It shows that the relationship is more complex than just a simple linear one.
upvoted 0 times
...
Ashleigh
2 months ago
Yes, it does. It's interesting to see how broadband subscribers can impact household expenditure in a non-linear way.
upvoted 0 times
...
Benedict
2 months ago
I agree, option C does make sense. A non-linear relationship between the two variables seems plausible.
upvoted 0 times
...
...

Save Cancel