A Manager Wishes to Predict the Annual Cost (Y)of an Automobile

question 52

Multiple Choice

A manager wishes to predict the annual cost (y) of an automobile based on the number of kilometres (x) driven.The following model was developed: y = 1,550 + 0.36x.If a car is driven 15,000 kilometres, the predicted cost is ___.

• A)2090
• B)3850
• C)7400
• D)6950
• E)5400

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Definitions:

Journal Entries

Entries made in the accounting records to document financial transactions, updating account balances accordingly.

Noncumulative

A term often referring to certain preferred stock dividends that do not accumulate if unpaid, meaning if a dividend is skipped, it is not owed in the future.

Nonparticipating

A term often related to insurance policies or preferred stocks that do not have the right to share in additional earnings or dividends beyond a specified amount.

Journal Entries

Journal entries are the method of recording all the financial transactions of a business in the accounting system, as part of the double-entry bookkeeping system.