In the Simple Linear Regression, the Intercept Will Equal the Sample

question 36

Multiple Choice

In the simple linear regression, the intercept will equal the sample average of the outcome (Y) variable if which of the following is true?

• A) sVar(X) > 0
• B) \(\bar { X }\) = 0
• C) sCov(X, Y) > 0
• D) sCov(X, Y) < 0

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Definitions:

Security Prices

The market price at which a security is traded, reflecting the supply and demand dynamics for that particular security.

Supply And Demand

A fundamental economic concept that describes the relationship between the availability of goods and services and the desire for them by consumers, impacting their prices.

Cumulative Abnormal Returns

The sum of abnormal returns over a specified time period, often used to assess the impact of events in event studies.

Event Studies

Analysis methodology used to assess the impact of a specific event on the value of a company or an asset.