When There Is a Complete Absence of a Relationship Between

question 1

Multiple Choice

When there is a complete absence of a relationship between two variables,the regression line representing that relationship will be:

• A) horizontal.
• B) 45 degrees from the horizontal.
• C) either a or b above
• D) irregular and curved.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Installation Costs

Expenses associated with putting fixed assets into operation, including the costs of setting up, assembling, and installing the assets.

Residual Value

The estimated amount that an asset is expected to realize at the end of its useful life.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.