Exhibit 20

question 53

Multiple Choice

Exhibit 20.2 Suppose that the relationship between sales (Y,in $000) and number of salespeople (X) is represented by the following regression equation:
Y = 105.2 + 35.8X
Refer to Exhibit 20.2.What will average sales be equal to when 10 salespeople are used?

• A)$358,000
• B)$463.20
• C)$358.00
• D)$463,200
• E)More information is needed to answer this question.

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Definitions:

Cash Flow

The total accounting of funds moving in and out of a business, directly affecting its capability to remain solvent.

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership.

New Debt

Funds a company borrows through the issuance of debt instruments, such as bonds or loans, as a way to finance operations or projects.

New Equity

Capital raised by a company through the issuance of new shares to investors, leading to ownership dilution for existing shareholders.