Amelia Used a Random Sample of 100 Accounts Receivable to Estimate

question 53

Multiple Choice

Amelia used a random sample of 100 accounts receivable to estimate the relationship between Days (number of days from billing to receipt of payment) and Size (size of balance due in dollars) . Her estimated regression equation was Days = 22 + 0.0047 Size with a correlation coefficient of .300. From this information we can conclude that:

• A)9 percent of the variation in Days is explained by Size.
• B)autocorrelation is likely to be a problem.
• C)the relationship between Days and Size is significant.
• D)larger accounts usually take less time to pay.

---

Definitions:

Income Distribution

The way in which total income is shared among the population of a country or region.

Demographic Characteristics

Statistical data relating to the population and the particular groups within it, such as age, gender, income, and education levels.

Consumer Confidence

Consumer confidence is a measure of how optimistic or pessimistic consumers are regarding their expected financial situation, significantly influencing their spending and saving behaviors.

Disposable Income

The amount of money individuals or households have available to spend or save after income taxes have been deducted.