Testing Whether the Slope of the Population Regression Line Could

question 71

Multiple Choice

Testing whether the slope of the population regression line could be zero is equivalent to testing whether the:

• A)sample coefficient of correlation could be zero
• B)standard error of estimate could be zero
• C)population coefficient of correlation could be zero
• D)sum of squares for error could be zero

---

Definitions:

Cash Ratio

A liquidity metric that measures a company’s ability to cover its short-term liabilities with its cash and cash equivalents.

Current Ratio

A measure of a business's capability to settle short-term debts, calculated as the ratio of current assets to current liabilities.

Cash Equivalents

Liquid assets that can be quickly turned into a specific amount of cash and have initial maturity times of no more than three months.

Cash Ratio

A financial ratio indicating how well a company can cover its short-term obligations using its liquid assets.