Which of the Following Is an Assumption of OLS Regression

question 25

Multiple Choice

Which of the following is an assumption of OLS regression?

• A)The dependent variable will predict changes in the independent variable.
• B)The values in a sample follow a bell curve pattern or normal distribution.
• C)The coefficient will be -0.50.
• D)Cases in the sample are not randomly selected.

---

Definitions:

Direct Method

The direct method in accounting refers to a way of reporting cash flows from operating activities by directly listing major classes of gross cash receipts and payments.

Indirect Method

A technique used in cash flow statement preparation where net income is adjusted for non-cash transactions and changes in working capital to arrive at operating cash flow.

Financing Activity

Transactions and events where cash is raised or repaid to investors, such as issuing stock, borrowing money, or paying dividends.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and are not currently outstanding.