A Multiple Regression Analysis Showed the Following Results of the Individual

question 108

Multiple Choice

A multiple regression analysis showed the following results of the individual independent variables. Which independent variables are significantly related to the dependent variable?

• A) X₂ and X₄ are significantly related to the dependent variable indicated by their very small p-values.
• B) No significant relationship between the independent variables and the dependent variable.
• C) All 4 independent variables are highly correlated with each other, therefore they are all significantly related to the dependent variable.
• D) X₁ and X₃ are significantly related to the dependent variable indicated by their large p-values.

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Definitions:

Section 1231

A tax provision that allows for the preferential tax treatment of gains and losses on the sale or exchange of business property and assets held for more than one year.

Depreciation

An accounting method used to allocate the cost of a tangible or physical asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

FMV

The Fair Market Value represents the price at which property would be sold in an open market scenario.

Unrecaptured 1250 Gain

A type of gain on the sale of depreciable real property that’s taxed at a different rate than other capital gains.