When Using Simple Regression Analysis, If There Is a Strong

question 83

True/False

When using simple regression analysis, if there is a strong correlation between the independent and dependent variables, then we can conclude that an increase in the value of the independent variable causes an increase in the value of the dependent variable.

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Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation where an asset's book value is reduced at double the rate of its straight-line depreciation.

MACRS

Stands for Modified Accelerated Cost Recovery System, which is a method of depreciation used for tax purposes in the United States that allows for faster depreciation of assets.

Capital Expenditure

Capital utilized by a firm for the procurement or refurbishment of solid assets including real estate, production plants, or hardware.

Plant Assets

Long-term tangible assets that are used in the production of goods and services, such as machinery, buildings, and equipment.