THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 52

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x) and the number of hours they spend connected to the internet each month (y) .The data yield the following statistics:
,
,
,
,
-Determine the estimate of the variance of the population model error.

• A)118.347
• B)114.698
• C)19.399
• D)76.494

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Definitions:

Bond Issuance Costs

These are expenses that a company incurs when it issues bonds, including legal, accounting, and underwriting fees.

Premium Amortization

The process of gradually expensing the premium paid above a bond's face value over the remaining life of the bond.

Effective-interest Method

The effective-interest method is a technique used in amortizing the discount or premium on bonds payable, where the interest expense recorded over time corresponds to the bond's carrying value.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, recognized on the income statement.