Exhibit 12-9
a Regression and Correlation Analysis Resulted in the Following

question 18

Multiple Choice

Exhibit 12-9
A regression and correlation analysis resulted in the following information regarding a dependent variable y) and an independent variable x) .
$\begin{array}{ll}\Sigma \mathrm{X}=90 & \Sigma \mathrm{Y}-{\bar{\mathrm{Y}}) X}-\bar{X}) =466 \\\Sigma \mathrm{Y}=170 & \Sigma \mathrm{Y}-\overline{\mathrm{Y}}) ^{2}=1434 \\\mathrm{n}=10\\\mathrm{SSE}=505.98 & \Sigma \mathrm{X}-\bar{X}) ^{2}=234 \end{array}$

-Refer to Exhibit 12-9. The sample correlation coefficient equals

• A) 0.8045
• B) -0.8045
• C) 0
• D) 1

---

Definitions:

Receivables Turnover

A financial ratio that measures how efficiently a company collects its accounts receivable or the firm’s efficiency in managing credit.

Total Asset Turnover

This is a financial efficiency ratio that measures how well a company uses its assets to generate sales revenue.

Price-Earnings Ratio

A valuation metric indicating the ratio of a company's stock price to its earnings per share, used to evaluate the relative value of shares.

Return On Assets

A measure of a company's profitability, indicating how efficient it is at using its assets to generate earnings.