Which of the Following Best Describes the Relationship of the Least

question 179

Short Answer

Which of the following best describes the relationship of the least squares regression line: Estimated y = 2 - x? $\begin{array}{|l|l|}\hline A&\text {As \( x \) increases by 1 unit, y increases by 1 unit, estimated, on average. }\\\hline B&\text { As \( \mathrm{x} \) increases by 1 unit \( \mathrm{y} \) decreases by \( (2-\mathrm{x}) \) units, estimated, on average}\\\hline C&\text {As \( \mathrm{x} \) increases by 1 unit, y decreases by 1 unit, estimated, on average. }\\\hline D&\text { All of these choices are correct.}\\\hline \end{array}$

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Definitions:

Periodic Inventory System

An inventory accounting system where the inventory level is updated and the cost of goods sold is calculated at the end of a period, rather than after each sale.

Purchases Account

An account used in accounting to record the total cost of goods bought for resale during an accounting period.

Freight In

The cost of transporting goods into a business, usually included in the cost of inventory.