Using a Sample of 63 Observations,a Dependent Variable Y Is

question 61

Multiple Choice

Using a sample of 63 observations,a dependent variable Y is regressed against two variables X1 and X2 to obtain the fitted regression equation Y = 76.40 − 6.388X1 + 0.870X2.The standard error of b1 is 3.453 and the standard error of b2 is 0.611.At α = .05,we could

• A)conclude that both coefficients differ significantly from zero.
• B)reject H0: β1 ≥ 0 and conclude H0: β1 < 0.
• C)reject H0: β2 ≤ 0 and conclude H0: β1 > 0.
• D)conclude that Evans' Rule has been violated.

---

Definitions:

Operating Cash Flow

Cash generated by a company's normal business operations, indicating whether a company can maintain and grow its operations.

Fixed Assets

Physical assets with a long lifespan that serve operational purposes in a business and aren't likely to be sold or used up within a year.

Stockholders

Individuals or entities that own shares in a corporation, thus holding partial ownership of the company.

Current Assets

Refers to assets that a company expects to convert into cash within one year or one business cycle, whichever is longer.