Scenario 13-7 Julia Prepares Tax Returns and Does Bookkeeping. Last Year Her

question 393

Multiple Choice

Scenario 13-7
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business.
-Refer to Scenario 13-7. Julia's explicit costs are

• A)0.
• B)$10,000.
• C)$15,000.
• D)$25,000.

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Definitions:

Simple Linear Regression

A statistical technique that fits a linear equation to observed data to model the connection between a dependent variable and a single independent variable.

t-test Statistic

A test statistic used to determine if there is a significant difference between the means of two groups.

F-test Statistic

A value derived from an F-test which is used to compare statistical models in terms of variance explained by the models, to determine if the models are significantly different from each other.

ANOVA Table

A table used to summarize the sources of variability in the data being analyzed in an Analysis of Variance (ANOVA) test.