If a Regression Line Has a Y-Intercept of 6

question 35

Multiple Choice

If a regression line has a y-intercept of 6.75 and a slope of 1.25, then when x = 2 the actual value of y is:

• A) 9.25
• B) 8.75
• C) 2.25
• D) 1.45
• E) unknown

---

Definitions:

Bond Issue

The process by which a company or government raises funds by selling bonds to investors.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off as an expense over the bond's life.

Redeemed

The act of repurchasing or paying off a security such as a bond or preferred stock at its maturity or before.

Loss On Redemption

The financial loss experienced when a debt security is redeemed before its maturity date for more than its par value.