Regression Analysis Was Applied Between Demand for a Product (Y) $\hat { y }$

question 1

Multiple Choice

Regression analysis was applied between demand for a product (y) and the price of the product (x) , and the following estimated regression equation was obtained. $\hat { y }$ = 120 - 10x

Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to

• A) increase by 120 units.
• B) decrease by 100 units.
• C) increase by 20 units.
• D) decease by 20 units.

Understand the definition and characteristics of various types of options, including American, European, Asian, and Quanto options.

Comprehend the payoff and profit outcomes for both buyers and writers of call and put options under various market conditions.

Identify option trading strategies such as time spreads, straddles, and strips/straps and their intended market outlooks.

Understand the concept of exercise price and how it relates to the value of options and their categorization as in, at, or out of the money.

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Definitions:

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount rises, thereby imposing a higher percentage rate on those with higher incomes.

Marginal Tax Rate

The rate at which the last dollar of a person’s income is taxed, indicating the impact of an additional dollar of earnings on the amount of taxes paid.

Average Tax Rate

The proportion of total income that is paid in taxes.