Consider the Following Data and Its Associated Excel Output for a Simple

question 18

Multiple Choice

Consider the following data and its associated Excel output for a simple linear regression model.How would you describe the linear relationship between Y and X?
$$\begin{array} { | c | c | c | } \hline \text { Period } & \text { Y } & \text { X } \\\hline \text { Period 1 } & 10 & 1 \\\hline \text { Period 2 } & 11 & 2 \\\hline \text { Period 3 } & 9 & 3 \\\hline \text { Period 4 } & 12 & 4 \\\hline \text { Period 5 } & 13 & 5 \\\hline \text { Period 6 } & 12 & 6 \\\hline \text { Period 7 } & 15 & 7 \\\hline\end{array}$$
$$\begin{array} { | l | l | } \hline \text { Intercept } & 2.267 \\\hline \text { Slope } & 0.843 \\\hline \text { SE } & 1.810 \\\hline \text { Correlation } & 0.890 \\\hline \text { r-squared } & 0.791 \\\hline\end{array}$$

• A)no relationship
• B)positive relationship
• C)negative relationship
• D)inverse relationship
• E)not enough information is provided

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Definitions:

Sales Volume

The quantity of products or services sold within a specific period, critical for analyzing a company's performance and profitability.

Price-Earnings Ratio

A ratio used to value a company that measures its current share price relative to its per-share earnings.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Earnings per Share

A financial indicator showing the portion of a company's profit allocated to each outstanding share of common stock.