THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 224

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor investigated some of the factors that affect an individual student's final grade in his course.He proposed the multiple regression model Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + ε ,where Y is the final mark (out of 100),X₁ is the number of lectures skipped,X₂ is the number of late assignments,and X₃ is the mid-term test mark (out of 100).The professor recorded the data for 50 randomly selected students.The computer output is shown below.
The regression equation is
= 41.6 - 3.18x₁ - 1.17x₂ + 0.63x₃.

S = 13.74 R-Sq = 30.0%
ANALYSIS OF VARIANCE

-Interpret the coefficient b₂.

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Definitions:

Profitability Index

A calculation that determines the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Average Accounting Return

A financial ratio measuring the average net income an asset is expected to generate relative to its average book value.

Time Value

The principle stating that having money now is preferable to the same sum later, owing to the earnings it could potentially accrue.

Disadvantage

refers to a unfavorable condition or position that reduces the chances of success or effectiveness.