The Following Estimated Regression Equation Was Developed Relating Yearly Income $\hat { y }$

question 89

Multiple Choice

The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x₁) and their gender (x₂) (0 if male and 1 if female) . $\hat { y }$ = 30 + .7x₁ + 3x₂

Also provided are SST = 1200 and SSE = 384.The yearly income (in $) expected of a 24-year-old female individual is

• A) $19.80.
• B) $19,800.
• C) $49.80.
• D) $49,800.

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Definitions:

Short-Term Solvency

A company's ability to meet its short-term obligations, often assessed using liquidity ratios.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent ones, preparing the books for the next period.

End-of-Period Spreadsheet

A tool, typically in spreadsheet format, used at the end of an accounting period to compile adjustments and prepare financial statements.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to prepare financial statements.