Which of the Following Regression Equations Represents the Strongest Relationship

question 2

Multiple Choice

Which of the following regression equations represents the strongest relationship between X and Y?

• A)Y = 2 + .3X
• B)Y = 2 + 1.3X
• C)Y = 2 + 1.8X
• D)Y = 2 + 3X
• E)The strength of the relationship cannot be determined from the regression equation.

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Definitions:

Prepaid Rent

Payments made in advance for rent, which is recorded as an asset initially and then expensed over the period the payment covers.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Accrual

A method in accounting that recognizes financial events by matching revenues with expenses at the time the transaction occurs, not when payment is made or received.

Supplies Expense

The cost associated with the consumable items used in the operation of a business, such as office supplies or cleaning materials.