Exhibit 16-1 In a Regression Analysis Involving 25 Observations, the Following Estimated

question 40

Multiple Choice

Exhibit 16-1
In a regression analysis involving 25 observations, the following estimated regression equation was developed. = 10 - 18x₁ + 3x₂ + 14x₃
Also, the following standard errors and the sum of squares were obtained.S_b1 = 3 S_b2 = 6 S_b3 = 7
SST = 4,800 SSE = 1,296
-Refer to Exhibit 16-1. The coefficient of x₂

• A)is significant
• B)is not significant
• C)cannot be tested, because not enough information is provided
• D)None of these alternatives is correct.

---

Definitions:

Tax Lien

A legal claim by a government entity against a noncompliant taxpayer's assets.

Title Insurance

A type of insurance policy that protects property owners and lenders against losses from defects in titles.

Title Application

A formal request to a government authority for the recognition or registration of an ownership claim over a piece of property, often related to real estate.

Real Estate Settlement Procedures Act

A 1974 U.S. Federal law aimed at increasing transparency for homebuyers regarding settlement costs and eliminating kickbacks and fees that increase settlement costs for real estate transactions.