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

question 42

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 model

• A)is significant
• B)is not significant
• C)may or may not be significant
• D)None of these alternatives is correct.

---

Definitions:

Fees Earned

Income received from providing services, typically recognized in the accounting period when the services are rendered.

Wage Expense

The total cost incurred by a company for the salaries and wages of its employees.

Withdrawals

Sums of money withdrawn by the business owner(s) for private expenses.

General Journal

A basic accounting record used to keep track of all business transactions not recorded in specialized journals.