It Has Been Hypothesized That Overall Academic Success for Freshmen

question 90

Multiple Choice

It has been hypothesized that overall academic success for freshmen at college as measured by grade point average (GPA) is a function of IQ scores (X₁) , hours spent studying each week (X₂) , and one's high school average (X₃) . Suppose the regression equation is: Y' = -6.9 + 0.055X₁ + 0.107X₂ + 0.0083X₃.
The multiple standard error is 6.313 and R²= 0.826. For which independent variable does a unit change have the least effect on GPA?

• A) IQ scores (X₁)
• B) hours spent studying each week (X₂)
• C) high school average (X₃)

---

Definitions:

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.

Cash Flow

A measure of the amount of cash and cash-equivalents being transferred into and out of a business.

Project

An individual or collaborative enterprise planned and designed to achieve a specific goal.

WACC

By employing the Weighted Average Cost of Capital calculation, a company's cost of capital is assessed, with each type of capital weighted proportionately.