Regression Analysis Was Applied Between Sales Data (Y in $1000s)

question 77

Multiple Choice

Regression analysis was applied between sales data (y in $1000s) and advertising data (x in $100s) and the following information was obtained. ​ = 12 + 1.8x
​
N = 17
SSR = 225
SSE = 75
Sb₁ = .2683
The critical t value for testing the significance of the slope, at a .05 level of significance, is

• A) 1.753.
• B) 2.131.
• C) 1.746.
• D) 2.120.

---

Definitions:

Floatation Expenses

The costs associated with issuing new securities in the market, including underwriting, legal, and registration fees.

Book Value

The net value of a company's assets found on its balance sheet, calculated by subtracting liabilities from the total assets.

Market Values

The current prices at which assets, securities, commodities, or services can be bought or sold in a marketplace, emphasizing the plural to encompass a range of values across various markets.

WACC

Weighted Average Cost of Capital; a calculated average of the cost of equity and the cost of debt that a company uses to finance its operations, weighted based on the proportion of each finance source in the company's capital structure.