In a Simple Linear Regression Analysis (Where Y Is a Dependent

question 125

Multiple Choice

In a simple linear regression analysis (where y is a dependent and x an independent variable) , if the y-intercept is positive, then

• A) there is a positive correlation between x and y.
• B) if x is increased, y must also increase.
• C) if y is increased, x must also increase.
• D) the estimated regression line intercepts the positive y-axis.

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Definitions:

Net Income

The total earnings of a company after deducting all expenses, including taxes and operating costs, from its total revenue.

Weighted-Average

A calculation that takes into consideration the varying degrees of importance of the numbers in a data set.

Cash Dividends

Cash Dividends are payments made by a corporation to its shareholder members. It is a share of profits and retained earnings that the company pays out to its shareholders.

Net Loss

The amount by which a company's expenses exceed its revenues during a specific period, indicating a financial loss.