In Which of the Following Relationships Does the Intercept Have

question 1

Multiple Choice

In which of the following relationships does the intercept have a real-world interpretation?

• A)the relationship between the change in the unemployment rate and the growth rate of real GDP ("Okun's Law")
• B)the demand for coffee and its price
• C)test scores and class-size
• D)weight and height of individuals

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the proportion of earnings a company pays out to shareholders in the form of dividends.

Internal Growth Rate

The growth rate a firm can maintain with only internal financing.

Growth Determinant

A factor that is critical to the expansion of a company or economy, such as technology, capital, and human resources.