Which of the Following Is an Example of a Fixed

question 73

Multiple Choice

Which of the following is an example of a fixed cost that businesses have to incur?

• A) cost of raw materials
• B) cost of supplies
• C) shipping costs
• D) sales commissions
• E) cost of building plants

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Definitions:

Durbin-Watson Statistic

A statistical measure employed to identify if there is autocorrelation at the first lag within the residual values following a regression analysis.

Positive Autocorrelation

A situation in which the errors in a regression model are positively correlated, meaning that a positive error in one period is likely to be followed by a positive error in the next.

Multicollinearity

A situation in regression analysis where independent variables are highly correlated, making it difficult to estimate individual regression coefficients accurately.

Regression Coefficients

Regression coefficients are values that quantify the relationship between independent variables and a dependent variable in regression analysis.