Which Statement Is Not True About the Constant B in the Bivariate

question 49

Multiple Choice

Which statement is not true about the constant b in the bivariate regression equation Ŷ _i = a + bX_i?

• A)It is usually referred to as the non-standardized regression coefficient.
• B)It is the slope of the regression line and it indicates the expected change in Y when X is changed by one unit.
• C)It is the intercept of the regression line and it indicates the value of Y when X is zero.
• D)It may be computed as b=COV_xy/S_x².

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Definitions:

Independent

A term describing events that are not affected by other events, or variables with no association or influence on each other.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a specified discount rate.

Cash Inflows

Funds entering a business or project, typically received through sales, investments, or financing.

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash assets.