The Data Below Are the Average One-Way Commute Times (In

question 3

Multiple Choice

The data below are the average one-way commute times (in minutes) for selected students and the number ofabsences for those students during the term. Find the equation of the regression line for the given data. Whatwould be the predicted number of absences if the commute time was 95 minutes? Is this a reasonable question?Round the predicted number of absences to the nearest whole number. Round the regression line values to thenearest hundredth. $\begin{array} { | l | c | c | c | c | c | c | c | c | c | } \text { Commute time } ( \mathrm { min } ) , \mathrm { x } & 72 & 85 & 91 & 90 & 88 & 98 & 75 & 100 & 80 \\\hline \text { Number of absences, } \mathrm { y } & 3 & 7 & 10 & 10 & 8 & 15 & 4 & 15 & 5\end{array}$

• A) \(\hat { y } = 0.45 \mathrm { x } - 30.27 ; 12\) absences; \(Y e s\), it is reasonable.
• B)\(\hat { y } = 0.45 \mathrm { x } - 30.27 ; 12\) absences; No, it is not reasonable. 95 minutes is well outside the scope of the model.
• C) \(\hat { y } = 0.45 \mathrm { x } + 30.27 ; 73\) absences; Yes, it is reasonable.
• D) \(\hat { y } = 0.45 \mathrm { x } + 30.27 ; 73\) absences; No, it is not reasonable. 95 minutes is well outside the scope of the model.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (asset, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.

Operating Income

Earnings before interest and taxes (EBIT), representing the profits from a company's regular business operations excluding deductions of interest and taxes.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period.

Unearned Revenue

Income received by a company for services or products yet to be delivered or provided, often considered a liability until the service or product is delivered.