Exhibit 15-8 The Following Estimated Regression Model Was Developed Relating Yearly Income

question 53

Multiple Choice

Exhibit 15-8
The following estimated regression model was developed relating yearly income (Y in $1,000s) of 30 individuals with their age (X₁) and their gender (X₂) (0 if male and 1 if female) . Also provided are SST = 1,200 and SSE = 384.
-Refer to Exhibit 15-8. From the above function, it can be said that the expected yearly income of

• A)males is $3 more than females
• B)females is $3 more than males
• C)males is $3,000 more than females
• D)females is $3,000 more than males

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Definitions:

Common-sized Statement

A financial statement in which each line item is expressed as a percentage of a relevant total, which allows for easy comparison across time periods or companies.

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Different Industries

Various sectors of the economy that produce or distribute goods and services, such as technology, healthcare, and manufacturing.

Common-sized Financial Statements

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across periods or companies.