Which of the Following Is a Correct Interpretation for the Regression

question 88

Multiple Choice

Which of the following is a correct interpretation for the regression slope coefficient?

• A)For a one-unit change in y,we can expect the value of the independent variable to change by b₁ units on average.
• B)For each unit change in x,the dependent variable will change by b₁ units.
• C)The average change in y of a one-unit change in x will be b₁ units.
• D)The average change in x of a one-unit change in y will be b₁ units.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Capital Project

A long-term investment undertaken to build, add or improve on a capital asset such as buildings or infrastructure, with the expectation of enhancing value.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.