The Following Model Was Created to Show the Association Between

question 38

Multiple Choice

The following model was created to show the association between the number of massages received per month and self- predicted stress level: Stress level = 10 - 0.02(number of massages per month) . The coefficient of determination for the model is 0.066 or 6.6%. Choose the true statement regarding this model.

• A)The model shows that there is a negative association between stress level and number of monthly massages, but the relatively small coefficient of determination suggests that very little of the variation is explained by the model, so the model is probably not very good at predicting stress level.
• B)The model shows that on average a person getting no massages will always have a stress level of 10.
• C)The model shows that getting even one massage a month will decrease your stress level.
• D)None of these.

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Definitions:

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Residual Value

The estimated value of an asset at the end of its useful life.

Double Diminishing-Balance

A method of accelerated depreciation that computes depreciation at double the rate of the straight-line method.

Carrying Amount

The book value of assets or liabilities as recorded in the financial statements, after accounting for depreciation, amortization, or impairment.