Exhibit 12-10
the Following Information Regarding a Dependent Variable Y

question 31

Multiple Choice

Exhibit 12-10
The following information regarding a dependent variable Y and an independent variable X is provided.
$$\begin{array} { l } \mathrm { n } = 4 \\\Sigma \mathrm { X } = 16 \\\Sigma \mathrm { Y } = 28 \\\Sigma \mathrm { Y } - { \bar { Y ) } } \mathrm { X } - \bar { X } ) = - 8 \\\Sigma \mathrm { X } - \bar { X } ) ^ { 2 } = 8 \\\mathrm { SST } = 42 \\\mathrm { SSE } = 34\end{array}$$
-Refer to Exhibit 12-10. The slope of the regression function is

• A) -1
• B) 1.0
• C) 11
• D) 0.0

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Definitions:

Payback Period

The duration required for an investment to produce a sum of money or cash value equal to the investment's cost.

Simple Rate

An interest calculation method where interest is calculated on the principal amount only, without compounding.

Cash Flows

Movements of money into and out of a business or an account that are used to measure financial health or operational effectiveness.

Working Capital

A measure of a company's operational liquidity, calculated as current assets minus current liabilities.