Data on Internet Usage (Per 100 Inhabitants) and Population Were

question 13

Multiple Choice

Data on internet usage (per 100 inhabitants) and population were collected for a sample of 52 countries whose populations ranged from 0 to 40 million.Suppose the linear model fit to these data is used to determine Internet usage in India, a country with a population of 1,153,230,948.This would be called ________________________ .

• A)an accurate prediction
• B)an extrapolation
• C)a time series prediction
• D)an exaggeration
• E)a residual

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the price paid for the use of a lender's money.

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its useful life.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus depreciation.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.