Consider the Following to Answer the Question(s) Below

question 8

Multiple Choice

Consider the following to answer the question(s) below:
A Toronto accounting firm estimated a model to explain variation in client profitability. The dependent variable is client net profits and the predictor variables include the hours spent working on the client and indicator variables to denote the type of client-manufacturing, service, or government. The indicator variables have a value of one if the client is the type described. The following are the model results.
-At α = 0.05, which of the following statements is not correct?

• A) The overall regression model is significant in explaining net profits.
• B) The number of hours spent on a client is not significant in explaining variation in client profitability.
• C) The indicator variables for client type are significant in explaining variation in client profitability.
• D) The regression model explains about 70% of the variation in client profitability.
• E) The number of hours spent on a client is significant in explaining variation in client profitability.

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Definitions:

Perfect Tender Rule

A standard that requires the seller to deliver goods in conformity with the terms of the contract, without any defects or deviations.

Cure

The act of correcting a breach of contract or rectifying a defective performance within a specified period.

Anticipatory Repudiation

A contractual party's indication, before their due performance time, that they will not fulfill their contractual obligations.

Substantially Impairs

Refers to a significant negative effect or reduction in the quality, value, or functionality of something.