Exhibit 16-1
In a regression analysis involving 25 observations, the following estimated regression equation was developed. 
Also, the following standard errors and the sum of squares were obtained.
Sb1 = 3
Sb2 = 6
Sb3 = 7
SST = 4,800
SSE = 1,296
-Refer to Exhibit 16-1. The coefficient of X2
Definitions:
Liability
An obligation that a corporation or individual has to another entity, typically financial in nature, such as loans or accounts payable.
Asset
Resources owned by an individual or business that have economic value and can be used to meet debts, commitments, or legacies.
Prepaid Rent Expense
An accounting term for rent payments made in advance of the rental period, recorded as an asset on the balance sheet until the period of use.
Adjustment
The process of making entries to correct accounts or to allocate amounts properly at the end of an accounting period.
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