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

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Definitions:

Variance

A measure of the dispersion of a set of data points around their mean; conceptually, it's the average of the squared differences from the Mean.

Cash Flows

The total amount of money being transferred into and out of a business, determining its operating, investing, and financing activities' liquidity.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share of the company's profits through dividends.

Inventory

Inventory consists of the goods and materials that a business holds for the purpose of resale or production.