A Sample of 33 Companies Was Randomly Selected and a Multiple

question 18

Multiple Choice

A sample of 33 companies was randomly selected and a multiple regression model was performed using average annual bonus and trust index (scale of 0 - 100) to
Explain turnover rate. According to the output below, what is the F statistic to
Determine the overall significance of the estimated is $$\begin{array}{l}\text { Analysis of Variance }\\\begin{array} { l r r r } \text { Source } & \text { DF } & \text { SS } & \text { MS } \\\text { Regression } & 2 & 262.73 & 131.36 \\\text { Residual Error } & 30 & 67.27 & 2.24 \\\text { Total } & 32 & 330.00 &\end{array}\end{array}$$

• A) 58.64
• B) 1.497
• C) 131.36
• D) 78.3
• E) 2.24

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Definitions:

Fair Value

The amount of money one would expect to obtain from selling an asset or the cost incurred to settle a liability, during a structured exchange between parties in the market, as of the valuation date.

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, reducing the book value of assets more quickly in the early years.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, which reflects the loss in value due to usage, wear and tear, or obsolescence.

Residual Value

The forecasted price an asset is likely to command at the end of its usefulness.