In a Simple Regression Analysis (Where Y Is a Dependent

question 117

Multiple Choice

In a simple regression analysis (where Y is a dependent and X an independent variable) , if the Y intercept is positive, then

• A)there is a positive correlation between X and Y
• B)if X is increased, Y must also increase
• C)if Y is increased, X must also increase
• D)None of these alternatives is correct.

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Definitions:

Operating Cycle

The duration between a company's purchase of inventory and the collection of accounts receivable generated from sales of that inventory.

Accounts Receivable Period

The accounts receivable period measures the average number of days it takes for a company to collect payments after a sale has been made, indicating the efficiency of its credit and collection policies.

Receivables Period

The mean duration required for a company to collect payments from its customers for products or services supplied on credit.

Credit Policy Decisions

Strategic determinations made by a business regarding who qualifies for credit, the terms of credit, credit limits, and how to collect on overdue accounts.