If an Estimated Regression Line Has a Y-Intercept of 10

question 206

Multiple Choice

If an estimated regression line has a y-intercept of 10 and a slope of -5, then when x = 0, the estimated value of y is:

• A)−5
• B)0
• C)5
• D)10

---

Definitions:

Acid Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.

Debt to Assets

A financial ratio that measures the proportion of a company’s total debt to its total assets, indicating the degree of leverage.

Financed by Creditors

A phrase indicating that a portion of a company's funding or assets has been obtained through borrowing from lenders.

Total Assets

The sum of all owned resources (assets) that have economic value which a company or individual possesses.