Two Simple Regression Models Were Used to Predict a Single

question 78

True/False

Two simple regression models were used to predict a single dependent variable. Both models were highly significant, but when the two independent variables were placed in the same multiple regression model for the dependent variable, R2 did not increase substantially and the parameter estimates for the model were not significantly different from 0. This is probably an example of collinearity.

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Sales Discount

A reduction in the price of a product or service offered to customers to encourage prompt payment.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the cost and risk of loss or damage once the goods are shipped by the seller.

Perpetual Inventory Method

A system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Accounts Payable-Emma Co.

The amount of money Emma Co. owes to its suppliers or creditors for items or services purchased on credit.