John Owns a Small Department Store That Issues Its Own

question 124

Multiple Choice

John owns a small department store that issues its own credit cards.He has been considering phasing out his own credit card and accepting only cash.If John chooses to do this he will be going from a position of risk to one of risk .

• A)assumption;transfer
• B)reduction;transfer
• C)avoidance;reduction
• D)assumption;avoidance

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Definitions:

Linear Model

A statistical model that assumes a linear relationship between input variables (independent) and a single output variable (dependent).

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Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the vertical distances of the points from the line.

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