The Following Table Presents the Average Price in Dollars for a Dozen

question 7

Multiple Choice

The following table presents the average price in dollars for a dozen eggs and a gallon of milk in several recent years.
$\begin{array} { c c } \begin{array} { c } \text { Dozen } \\\text { eggs }\end{array} & \begin{array} { c } \text { Gallon of } \\\text { milk }\end{array} \\1.89 & 3.53 \\1.81 & 3.56 \\1.84 & 3.48 \\1.77 & 3.57 \\1.65 & 3.50 \\1.82 & 3.60 \\1.63 & 3.47 \\1.63 & 3.41\end{array}$
The least-squares regression equation is $y = 2.8569 + 0.3750 x$ . If the price of eggs differs by $0.25 From one year to the next, by how much would you expect the price of milk to differ?

• A) $1.50
• B) -$0.09
• C) $0.38
• D) $0.09

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Definitions:

Initial Margin

The initial margin is the upfront investment required when buying on margin or entering a futures contract, acting as a security deposit for the trade.

Maintenance Margin

The minimum amount of equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.

Interest Rate Swaps

Financial derivatives contracts where two parties exchange interest rate payments on a specified principal amount, typically exchanging fixed for floating rates.

Fixed-rate Bonds

Fixed-rate Bonds are bonds that pay the same rate of interest from issue until maturity, regardless of changes in market interest rates.