For the Following Regression Equation $\tilde { y } = 100 - 12 x _ { 1 } + 5 x _ { 2 } - 4 x _ { 1 } x _ { 2 }$

question 31

Multiple Choice

For the following regression equation $\tilde { y } = 100 - 12 x _ { 1 } + 5 x _ { 2 } - 4 x _ { 1 } x _ { 2 }$ ,a unit increase in x₁,while holding x₂ constant at a value of 2,decreases the value of y on average by:

• A) 92
• B) 85
• C) 20
• D) an amount that depends on the value of x₁.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to fund day-to-day operations.

Current Ratio

A financial metric assessing a firm's capability to settle its current obligations using its current assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable) without relying on inventory sales.

Current Ratio

This ratio evaluates a corporation's potential to meet its immediate financial obligations, by dividing the total of current assets by the total of current liabilities.