Which of the Following Term Reflects the Inclusion of Each

question 35

Multiple Choice

Which of the following term reflects the inclusion of each independent variable by b_ix_i to preserve the straight-line assumptions of multiple regression analysis?

• A) independence assumption
• B) multicollinearity
• C) additivity requirement
• D) regression plane
• E) uncorrelation

---

Definitions:

Cash Break-even Point

The point at which a business's cash inflows equal its cash outflows, excluding financing.

Degree of Operating Leverage

A ratio that quantifies the sensitivity of a company's operating income to its sales, demonstrating the impact of fixed and variable costs on profitability.

Fixed Costs

Fixed costs that stay the same no matter how much is manufactured or sold, including expenses for rent, employee salaries, and insurance charges.

Hard Rationing

A situation where companies cannot obtain funds for projects despite having positive net present values due to external financing constraints.