I Violating the Need for Successive Observations of the Dependent

question 36

Multiple Choice

i. Violating the need for successive observations of the dependent variable to be uncorrelated is
Called autocorrelation.
ii. If an inverse relationship exists between the dependent variable and independent variables, the
Regression coefficients for the independent variables are negative.
iii. Given a multiple linear equation Y' = 5.1 + 2.2X1 - 3.5X2, assuming other things are held constant,
An increase in one unit of the second independent variable will cause a -3.5 unit change in Y.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

---

Definitions:

Mineral Rights

Legal entitlements that grant the holder the ability to mine, extract, or exploit minerals from the land.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Straight-Line Method

A process for figuring out depreciation or amortization by spreading the asset’s price evenly over its operational life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in its value over time.