The Following Table Shows the Number of Cars Sold Last

question 54

Multiple Choice

The following table shows the number of cars sold last month by six dealers at Centreville Nissan dealership and their number of years of sales experience. Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience. The standard error of the estimate is equal to ________.

• A) 1.84
• B) 2.60
• C) 2.84
• D) 5.00

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Definitions:

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Cash Payback Period

The length of time required for an investment to generate cash flows sufficient to recover the initial outlay.

Present Value Factors

The numerical values used to calculate the present value of future cash flows, based on a specific discount rate.

Desired Rate of Return

The minimum rate of return on an investment that an investor considers acceptable, given its risk and alternative options.