Use the Data Given Below to Answer the Following Question(s)

question 9

Multiple Choice

Use the data given below to answer the following question(s) .
Following is an extract from the database of a construction company.The table shows the height of walls in feet and the cost of raising them.The estimated simple linear regression equation is given as Ŷ = b0 + b1X.(Hint: Use Excel functions) .
$$\begin{array} { | r | r | } \hline \begin{array} { l } \text { Height } \\\text { (ft) }\end{array} & \text { Cost (\$) } \\\hline 4 & 670 \\\hline 3 & 430 \\\hline 7 & 810 \\\hline 9 & 1100 \\\hline 6 & 790 \\\hline 8 & 880 \\\hline 5 & 760 \\\hline 11 & 1200 \\\hline\end{array}$$
-While testing hypotheses for regression coefficients, the t-test for the slope is expressed as:

• A)t = \(\frac { b 1 - 0 } { \text { standard error } }\)
• B)t = \(\frac{b_{1}-0}{b_{0}+b_{1}}\)
• C)t = \(\frac{b_{1}}{b_{0}-b_{1}}\)
• D)t = \(\frac { \text { (standard error) } ^ { 2 } } { b _ { 0 } - b _ { 1 } }\)

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Definitions:

Dividends

Payments made by a corporation to its shareholders, out of its profit or reserves, usually on a regular basis.

Investment

The allocation of resources, usually money, in order to earn income or profit over time.

Partial Equity Method

An accounting method used when an investing company has significant influence over, but not full control of, another company, requiring the investor to record its share of profits.

Equity Method

The Equity Method is an accounting technique used to record investments in other companies, recognizing the income earned from the investment proportional to ownership.