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

question 45

Multiple Choice

Exhibit 16-1
In a regression analysis involving 25 observations, the following estimated regression equation was developed. 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. If we are interested in testing for the significance of the relationship among the variables (i.e., significance of the model) the critical value of F at $\alpha$ = 0.05 is

• A)2.76
• B)2.78
• C)3.10
• D)3.07

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Definitions:

Straight-Line Depreciation

Depreciation method in which the amount taken to depreciation expense each year is constant and equal to 1/n times the depreciable amount, where n is the depreciable life of the asset.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Opportunity Cost

The receipts from the next most valuable forgone alternative when making a decision or choice among many options.

Opportunity Cost

The value of the best alternative foregone where a choice needs to be made between several mutually exclusive alternatives.