In Testing Whether each Individual independent Variables (Xs)in a Multiple

question 20

Multiple Choice

In testing whether each individual independent variables (Xs) in a multiple regression equation is statistically significant in explaining the dependent variable (Y) ,one uses the:

• A) F-test
• B) Durbin-Watson test
• C) t-test
• D) z-test
• E) none of the above

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Definitions:

Cash Payback Period

The duration it takes for a project or investment to repay its initial cost from the cash inflows it generates.

Annual Net Cash Flows

The difference between a company's cash inflows and outflows within a fiscal year.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Present Value Index

A financial metric that evaluates the profitability of an investment or project by comparing the present value of cash inflows to the present value of cash outflows.