Suppose That We Find a Regression Relating X to Y

question 82

Multiple Choice

Suppose that we find a regression relating X to Y by the following equation: Y´ = 12 + .80X.If we observe an X score of 2,what score on Y would we expect?

• A) 8
• B) 10.4
• C) 13.6
• D) 16.4

---

Definitions:

Financial Break-even

The point at which total revenues equal total expenses, and the company makes no profit or loss.

Discounted Basis

A method of purchasing or selling a financial instrument (e.g., a bond) for a price that is below its nominal or face value, reflecting the present value of its future cash flows.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, respectively.

Discounted Payback Period

The time required to recover an investment's costs, taking the time value of money into account by discounting future cash flows.