Exhibit 12-3 You Are Given the Following Information About Y and X

question 70

Multiple Choice

Exhibit 12-3
You are given the following information about y and x.

-Refer to Exhibit 12-3. The least squares estimate of b₁ equals

• A)1
• B)-1
• C)-11
• D)11

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Definitions:

Pro Forma Net Income

A projected net income over a specific period, calculated under hypothetical assumptions or adjustments.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company.

Sales Decrease

A reduction in the amount of goods or services sold by a business within a specific time period.

Equity Financing

The method of raising capital through the sale of shares, offering investors ownership interests in the company.