In a Study of Reaction Times, the Time to Respond $( x )$

question 2

Multiple Choice

In a study of reaction times, the time to respond to a visual stimulus $( x )$ and the time to respond to an auditory stimulus $( y )$ were recorded for each of 8 subjects. Times were measured in thousandths of a second. The results are presented in the following table.
$\begin{array}{cc}\hline \text { Visual } & \text { Auditory } \\\hline 218 & 209 \\153 & 150 \\240 & 226 \\202 & 196 \\243 & 225 \\165 & 161 \\207 & 196 \\209 & 198 \\\hline\end{array}$

Compute the least-squares regression line for predicting auditory response time $( y )$ from visual response time $( x )$ .

• A) \(y = 20.509336 x\)
• B) \(y = 20.509336 + 0.853345 x\)
• C) \(y = 0.853345 x\)
• D) \(y = 0.853345 + 20.509336 x\)

Understand the impact of capital structure changes on a firm's cost of equity.

Analyze the relationship between a firm's capital structure and its operational efficiency, as reflected by free cash flows and leveraged versus unleveraged beta.

Understand how stock splits affect shareholder position and stock price.

Grasp the stability and determinants of dividends.

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