____________ Is the Mathematical Technique for Fitting a Line That

question 24

Multiple Choice

____________ is the mathematical technique for fitting a line that best describes the relationship between two variables.

• A)Pearson's product-moment correlation
• B)Least squares procedure
• C)Chi-square test
• D)Significance test
• E)none of the above

Recognizing the mutual benefits of trade and exchange.

Distinguishing the situation where market failure occurs and its implications for society.

Understanding the principles of market efficiency and scarcity.

Evaluating the trade-offs between efficiency and equity in resource allocation.

---

Definitions:

Dividend Cuts

A reduction in the dividend payments announced by a company, often due to financial difficulties or a need to retain more earnings for investments.

Target D/E Ratio

The desired debt-to-equity ratio that a company aims to achieve to optimize its capital structure.

Residual Dividend Policy

Residual Dividend Policy is a strategy where a company pays dividends out of the residual or leftover equity only after all project capital needs are met.

Dividend Irrelevance Theory

Holds that dividend policy has no effect on either the price of a firm’s stock or its cost of capital.