Use the Following Information to Answer the Question

question 23

Multiple Choice

Use the following information to answer the question. A high school girls cross country coach performs a regression to predict the finish times of runners in the 10k event from the number of minutes of training in the previous week. The output is shown below. Assume that the conditions of the linear regression model hold.

-The coach wants to predict the finish time of his top runner who trained for 145 minutes the previous week. Should the coach use a confidence interval or a prediction interval?

• A)Prediction Interval
• B)Confidence Interval

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Definitions:

Acid Test Ratio

A financial metric used to determine a company's liquidity by comparing its most liquid assets (excluding inventory) to its short-term liabilities.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation each year over an asset's useful life.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Units-Of-Production Method

A method for determining depreciation that distributes depreciation based on how much the asset is used.