Suppose You Estimate the Sample Regression Function You Should Conclude That,when Age Is Equal to Zero,students with sco}re

question 6

Multiple Choice

Suppose you estimate the sample regression function $$tes\widehat { t~ sco}re _ { i } = 61.13 + 9.42 \cdot \text { Age } _ { i } + 2.57 \cdot \text { Green } _ { i } - 6.32 \cdot \text { Brown } _ { i } + 1.48 \cdot \text { Other } _ { i }$$
You should conclude that,when age is equal to zero,students with blue eyes average

• A)6.32 points less than students with brown eyes.
• B)61.13 points.
• C)2.57 points more than students with green eyes.
• D)1.48 points more than students with other-colored eyes.

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to analyze the profitability of an investment or project.

CCA Rate

Capital Cost Allowance rate; a method of depreciation used for tax purposes in Canada, allowing a business to deduct the cost of certain assets.

Required Rate of Return

The minimum percentage return an investor expects to achieve by investing in a specific asset or project.

Net Working Capital

The gap between a firm's current assets and its current liabilities, showcasing the business's liquidity and its ability to operate efficiently.