Which of the Following Statements Is True

question 115

Multiple Choice

Which of the following statements is true?

• A)When using a simple linear regression analysis model for prediction purposes,the potential error in the forecast will be less when the value of x used to forecast y is closer to .
• B)The accuracy of the regression forecast is improved if the standard error for the regression slope coefficient is reduced.
• C)The use of regression analysis as a means of predicting the value for a dependent variable is not impacted by sampling error since the regression model uses all sample data to arrive at the regression model.
• D)None of the above.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's bottom line.

Variable Expenses

Expenses that change in proportion to the activity of a business, similar to variable costs.

Selling Price

The amount at which a product or service is sold to customers.

Operating Leverage

Operating Leverage is a measure of how a company's operating income changes with sales volume, indicating the proportion of fixed costs in total costs.