Which of the Following Statements Is True

question 39

Multiple Choice

Which of the following statements is true?

• A) The interval estimate for predicting a particular value of y given a specific x will be narrower than the interval estimate for the average value of y given a particular x.
• B) The higher the r-square value, the wider will be the prediction interval based on a simple linear regression model.
• C) The prediction interval generated from a simple linear regression model will be narrowest when the value of x used to generate the predicted y value is close to the mean value of x.
• D) The prediction interval generated from a simple linear regression model will be widest when the value of x used to generate the predicted y value is close to the mean value of x.

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Definitions:

Advance

A payment made beforehand, often as part of a contractual agreement or as a loan that expects repayment under specific terms.

Interest Expense

The cost incurred by an entity for borrowed funds, which is reported on the income statement.

Pre-Acquisition Dividend

Dividends declared by a subsidiary prior to being acquired or controlled by the parent company.

Final Dividend

The last dividend payment made by a company to its shareholders for a fiscal year, after the company's final annual earnings are known.