The Editors of a National Automotive Magazine Recently Studied 30

question 108

Multiple Choice

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway mileage per gallon.A number of different independent variables were collected.The following correlation matrix was developed: If only one variable were to be brought into the model,which variable should it be if the goal is to explain the highest possible percentage of variation in the dependent variable?

• A)0 to 60 mph
• B)Horsepower
• C)Curb weight
• D)Displacement

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Definitions:

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, used to calculate the cost of goods sold.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Net Purchases

Net Purchases refers to the total amount of purchases made by a company after subtracting any returns, allowances, and discounts received.

Ending Inventory

is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.