Using the Regression Formula with a Slope = 0

question 48

Multiple Choice

Using the regression formula with a slope = 0.704 and an intercept = 0.719,what would the predicted college GPA be for a student whose current high school GPA = 3.2?

• A)2.69
• B)2.97
• C)3.00
• D)3.20

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Definitions:

Equity Financing

The process of raising capital through the sale of shares in a company to investors.

Du Pont Identity

A formula that breaks down Return on Equity (ROE) into three component parts: profit margin, asset turnover, and financial leverage, to analyze a company’s financial performance.

Profit Margin

A fiscal indicator calculating the proportion of income left once total costs are subtracted from revenues.

Equity Multiplier

A financial ratio indicating the proportion of a company's assets that are financed by stockholder's equity.