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

question 9

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 point estimate of Y when X = 3 is

• A) 11
• B) 14
• C) 8
• D) 0

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Definitions:

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.

Zero-Coupon Bond

A bond that does not pay periodic interest payments, but is instead sold at a discount from its face value and pays its full value at maturity.

Purchase Price

The amount of money paid to buy an asset.

Face Value

The nominal or dollar value printed on a security or currency, indicating its worth as stated by the issuing authority.