William Used a Sample of 68 Large U

question 20

Multiple Choice

William used a sample of 68 large U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median annual income per capita, in dollars) . His estimated regression equation was Crime = 428 + 0.050 Income. We can conclude that:

• A)the slope is small so Income has no effect on Crime.
• B)crime seems to create additional income in a city.
• C)wealthy individuals tend to commit more crimes, on average.
• D)the intercept is irrelevant since zero median income is impossible in a large city.

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Definitions:

FIFO Method

First-In, First-Out method; an inventory valuation technique where the goods purchased or produced first are sold or used first.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant component of its cost.

Work in Process

Inventory representing the cost of unfinished goods in production, including labor, materials, and overhead.

Yield

The earnings generated and paid to investors for an investment, often expressed as a percentage of the price of the investment.