Applying the OLS Model to Our Data Give Us the Following

question 9

Multiple Choice

Applying the OLS model to our data give us the following regression equation: ŷ = 3.41 + 12.89 x.
What would the forecast value be when the independent variable is 15.0?

• A)196.76
• B)16.30
• C)244.50
• D)32.19

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Definitions:

Pre-tax Cost

The expense or cost associated with an investment or project before any taxes are deducted.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, indicating the percentage of tax applied to your next dollar of taxable income.