A Linear Regression Equation Y = a + BX,the Fitted

question 10

Multiple Choice

a linear regression equation Y = a + bX,the fitted or predicted value of Y is

• A)the value of Y obtained by substituting specific values of X into the sample regression equation.
• B)the value of X associated with a particular value of Y.
• C)the value of X that the regression equation predicts.
• D)the values of the parameters predicted by the estimators.
• E)the value of Y associated with a particular value of X in the sample.

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate, influencing savings and borrowing costs.

Saving

Current income that is not spent on consumption goods. Saving makes it possible for resources to be devoted to investments (like the making of tractors or other equipment used in production).

Investment

The purchase, construction, or development of resources, including physical assets, such as plants and machinery, and human assets, such as better education. Investment expands an economy’s resources. The process of investment is sometimes called capital formation.