Use the Following to Answer Questions

question 29

Multiple Choice

Use the following to answer questions :
The following table lists the ages (in years) and the prices (in thousands of dollars) by a sample of six houses.

-Suppose we have information on the ages (in years) and the prices of a sample of houses.In the regression of price on age for these data,the value of b will represent:

• A)the point where this regression line will intersect the y-axis
• B)the point where this regression line will intersect the x-axis
• C)an decrease in the age of a house due to a $1,000 increase in its price
• D)an decrease in the price of a house due to a one year increase in its age

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Definitions:

Capital Funds

Financial resources that are used to fund a company's operations and growth, typically sourced from equity or debt.

Net Present Value

A method to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period.

Variable Costs

Expenses that fluctuate in direct proportion to the quantity of output or sales, including items like labor and materials.

Sensitivity Analysis

A method employed to ascertain the effects of varying an independent variable on a specific dependent variable, given certain presuppositions.