Compute the Sum of Squared Residuals
-Compute the Sum of the Squared

question 59

Multiple Choice

Compute the Sum of Squared Residuals
-Compute the sum of the squared residuals of the least-squares line for the given data.
$\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|}\mathrm{x} & -5 & -3 & 4 & 1 & -1 & -2 & 0 & 2 & 3 & -4 \\\hline \mathrm{y} & -10 & -8 & 9 & 1 & -2 & -6 & -1 & 3 & 6 & -8\end{array}$

• A) \(7.624\)
• B) \(1.036\)
• C) \(2.097\)
• D) 0

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Definitions:

Net Present Value

The gap between cash inflows' present value and cash outflows' present value during a certain period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded over time for a fixed asset, reflecting its decrease in value.

Income Tax Rate

The percentage at which an individual or corporation is taxed. The tax rate may increase as taxable income increases (progressive tax rates).

Profitability Index

A financial metric used to assess the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.