Which of the Following Regression Models Is a First-Order Polynomial

question 48

Multiple Choice

Which of the following regression models is a first-order polynomial?

• A) y = β₀ + ε
• B) y = β₀ + β₁x + ε
• C) y = β₀ + β₁x +β₂x²+ ε
• D) y = β₀ + β₁x + β₂x² + β₃x³ + ε

---

Definitions:

Income Tax Method

When plant assets are exchanged, tax law says the gain or loss must be absorbed into the cost of the new asset.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment, intended to improve long-term operational efficiency.

Revenue Expenditures

Costs that are charged to expense as incurred and are primarily associated with the maintenance and repair of fixed assets or for benefits within the current period.

Intangible Asset

An asset that lacks physical substance, such as patents, trademarks, and copyrights, holding value for a business.