Exhibit 14-3 Regression Analysis Was Applied Between Sales Data (In $1,000s) and $1,000s)

question 79

Multiple Choice

Exhibit 14-3
Regression analysis was applied between sales data (in $1,000s) and advertising data (in $100s) and the following information was obtained.
-Refer to Exhibit 14-3. The t statistic for testing the significance of the slope is

• A)1.80
• B)1.96
• C)6.709
• D)0.555

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Definitions:

Cost Method

An investment accounting method where the investment is recorded at its acquisition cost, and income is recognized only when dividends are received.

Treasury Stock

Shares that were once a part of the outstanding shares of a company but were bought back and are held by the company itself.

Cost Method

An accounting method used to value inventory or investments at their original cost.

Par Value

A nominal value assigned to shares of stock, which may not reflect the actual market value.