It Has Been Hypothesized That Overall Academic Success for Freshmen

question 53

Multiple Choice

It has been hypothesized that overall academic success for freshmen at college as measured by
Grade point average (GPA) is a function of IQ scores (X1) , hours spent studying each week (X2) , and
One's high school average (X3) . Suppose the regression equation is:
Y' = -6.9 + 0.055X1 + 0.107X2 + 0.0083X3.
The multiple standard error is 6.313 and R2 = 0.826.Assuming other independent variables are held
Constant, what effect on the GPA will there be if the numbers of hours spent studying per week
Increases from 32 to 36?

• A) 3.1446
• B) -0.824
• C) +0.428
• D) -0.428
• E) +0.824

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities.

Net Present Value

A method of valuing a series of future cash flows by discounting them back to their present value using a specified rate of return.

Working Capital

Working Capital is the difference between a company's current assets and current liabilities, indicating short-term financial health.

Discount Rate

This refers to the rate used in discounted cash flow assessments to figure out the current value of cash flows expected in the future.