A Least-Squares Regression Line for the Annual Profit Trend of a Small

question 1

Multiple Choice

A least-squares regression line for the annual profit trend of a small restaurant is calculated as being t = 35983 + 3567x. Estimate the time point value for year 6.

• A) £57385
• B) £53818
• C) £60952
• D) £64519

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Definitions:

Financial Asset

Any asset that is cash, an equity instrument of another entity, a contractual right to receive cash or another financial asset, or a contractual right to exchange financial instruments under favorable conditions.

Price Changes

Alterations in the cost of goods or services over time, influenced by factors like supply, demand, and inflation.

Derivative Security

A derivative security is a financial instrument whose value is based on the performance of underlying assets, indexes, or other financial instruments.

Financial Asset

A financial asset refers to any asset that is cash, a contractual right to receive cash or another financial asset from another entity, or a contractual right to exchange financial instruments with another entity under conditions that are potentially favorable.