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HBX CORe Final Examination Sample Questions (Q64-Q69):

NEW QUESTION # 64
A student is interested in which factors affect the U.S. poverty rate and develops a linear regression model. The student uses poverty rate in all 50
U.S. states and Washington D.C. as the dependent variable and wants to relate it to the following variables:
The unemployment rate
The percent of the adult (over 25) population with at least a bachelor's degree
The percent of the population without health insurance
The percent of the adult (over 25) population without a high school diploma or equivalent
The percent of households with children under 18 run by a single mother
The student collects data from each state and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below.

Based on these results, select the independent variables that have a coefficient that is statistically significant at the 5% level. (Select all that apply.)

• A. Bachelor's Degree or Higher
• B. Percent of High School Dropouts
• C. Percent of Single Mother Households
• D. Unemployment Rate
• E. Percent of Population Uninsured

Answer: A,B

NEW QUESTION # 65
A grocery store has recently begun selling a new brand of milk for the same price as the brand of milk it already carries. After a few weeks, the grocery store finds that no one is buying the original brand of milk anymore. Which of the following scenarios could explain this situation?

• A. The cross-price elasticity of demand for the new and old milk brands is negative.
• B. The cost of producing the new milk brand is lower.
• C. There are network effects in milk consumption.
• D. The willingness to pay for the new milk brand is higher.

Answer: D

NEW QUESTION # 66
After a new report concludes that airplane exhaust has a negative impact on the environment, a government regulation is introduced which reduces the number of flights airlines can make in a day by 10 percent. To comply with this regulation, a certain airline halves the frequency of flights on several of its routes but maintains its original fleet of airplanes. What happens to the costs for the airline?

• A. Cost for each additional flight will increase.
• B. Total costs for the airline will increase.
• C. Total costs will fall by 10 percent.
• D. Average cost per flight will increase.

Answer: D

NEW QUESTION # 67
A student gathers information and performs a regression analysis comparing a person's undergraduate GPA to that person's starting salary after college graduation.

Based on this regression, what would a student with a GPA of 3.67 expect to earn on average upon college graduation?

• A. $45,670.40
• B. $50,351.10
• C. $29,622.42
• D. $17,124.95

Answer: B

NEW QUESTION # 68
The owner of a small hardware store learns that a large competitor is opening a store nearby. The new competitor has smaller profit margins on each unit than the small store but earns profits through larger volume. Which of the following techniques would BEST help the small store remain competitive?

• A. Improve service by hiring workers specializing in the maintenance of power tools
• B. Run advertisements showing how neighborhoods improve through individual home improvement
• C. Lower prices below variable cost
• D. Increase the size of the store

Answer: A

NEW QUESTION # 69
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