In a Simple Linear Regression Problem, the Following Statistics Are $\sum ( x - \bar { x } ) ( y - \bar { y } ) = 2250 , s _ { x } = 10 , \sum x = 50 , \sum y = 75$

question 235

Multiple Choice

In a simple linear regression problem, the following statistics are calculated from a sample of 10 observations: $\sum ( x - \bar { x } ) ( y - \bar { y } ) = 2250 , s _ { x } = 10 , \sum x = 50 , \sum y = 75$ . The least squares estimates of the slope and y-intercept are, respectively,

• A)1.5 and 0.5
• B)2.5 and 1.5
• C)1.5 and 2.5
• D)2.5 and -5.0

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Definitions:

Retained Earnings

The portion of a company’s profits that is kept or retained for reinvestment in the business, rather than being paid out as dividends to shareholders.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, as recorded on the balance sheet.

Stock Split

A stock split is a corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, while the market capitalization remains unchanged.

Retained Earnings

The portion of net income not distributed to shareholders as dividends and instead reinvested in the business.