In a Simple Linear Regression Problem, the Following Statistics Are $\sum ( x - \bar { x } ) ( y - \bar { y } )$

question 215

Short Answer

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: $\begin{array}{|l|l|}\hline\text { A. } &225 \text { and }-1117.5\\\hline \text { B. } &2.5 \text { and }-5 \text {. } \\\hline \text { C. } &25 \text { and }-117.5 \\\hline \text { D. } &25 \text { and } 117.5\\\hline\end{array}$

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Definitions:

Capital Lease

A long-term lease agreement considered to be a purchase of the asset for accounting purposes, where the lessee assumes both the risks and benefits of asset ownership.

Residual Value

The forecasted sale price of an asset at the conclusion of its operational lifespan.

Economic Life

The period during which an asset is expected to be usable for the purpose it was acquired.

Lease Receivable

An asset account that records the amount due to be received by a lessor from a lessee under the terms of a lease agreement.