In Least Squares Regression Analysis, the Cost to Be Estimated

question 51

Multiple Choice

In least squares regression analysis, the cost to be estimated is the:

• A) Independent variable.
• B) Dependent variable.
• C) Cost object
• D) Outlier.
• E) Dummy variable.

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Definitions:

Rates of Return

The gains or losses on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Graphical Representation

A visual way of presenting data, information, or statistical results using charts, graphs, or other imagery.

Discounted Payback

A method to evaluate the profitability of an investment by calculating the time it takes for the net present value of cash flows to equal the initial investment cost.

Required Return

The minimum expected return on an investment necessary to compensate for the risk taken by the investor, including the time value of money and inflation.