A Market Analyst Is Developing a Regression Model to Predict

question 83

Multiple Choice

A market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighborhood (urban, suburban, and rural) .The "neighborhood" variable in this model is ______.

• A)an independent variable
• B)a response variable
• C)a quantitative variable
• D)a dependent variable
• E)a constant

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Definitions:

Equity Multiplier

A financial ratio indicating how much of a company's assets are financed by stockholder's equity, illustrating the degree of financial leverage used.

Times-Interest-Earned (TIE) Ratio

Determined by dividing earnings before interest and taxes by the interest charges. This ratio measures the extent to which operating income can decline before the firm is unable to meet its annual interest costs.

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated as total liabilities divided by total assets.

Mark To Market

An accounting method that measures the fair value of accounts that can fluctuate over time, such as assets and liabilities.