The Linear Regression Equation, Y = a + BX, Was

question 2

Multiple Choice

The linear regression equation, Y = a + bX, was estimated. The following computer printout was
obtained:
$\begin{array}{rllll}\text { DEPENDENT VARIABLE: } & \text { Y } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\\text { OBSERVATIONS: } &18 & 0.3066 & 7.076 & 0.0171\end{array}$

$\begin{array}{lllll}\text { VARIABLE } & \begin{array}{llll}\text { PARAMETER } \\\text { ESTIMATE }\end{array} & \begin{array}{l}\text { STANDARD } \\\text { ERROR }\end{array} & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & 15.48 & 5.09 & 3.04 & 0.0008\\X&-21.36&8.03&-2.66&0.0171\end{array}$
-The exact level of significance of $\hat { b }$ is

• A) 0.171 percent.
• B) 1 percent.
• C) 1.71 percent.
• D) 2.66 percent.
• E) 2.921 percent.

---

Definitions:

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Convertible Notes

A financial instrument issued by companies that can be converted into equity, usually at the discretion of the holder or at specific future events.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the price paid for the use of a lender's money or credit.