A Regression Was Estimated Using These Variables: Y = Annual

question 90

Multiple Choice

A regression was estimated using these variables: Y = annual value of reported bank robbery losses in all U.S. banks ($ millions) , X = annual value of currency held by all U.S. banks ($ millions) , n = 100 years (1912 through 2011) . We would not anticipate:

• A)autocorrelated residuals due to time-series data.
• B)heteroscedastic residuals due to the wide variation in data magnitudes.
• C)nonnormal residuals due to skewed data as bank size increases over time.
• D)a negative slope because banks hold less currency when they are robbed.

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Definitions:

Instrument

A legal document that formalizes an agreement or right, such as a contract, will, or financial instrument.

Endorsement

The act of signing one's name on the back of a check or other negotiable instrument to legally transfer its ownership.

Blank Endorsement

An endorsement on a financial instrument, like a check, where the signature of the endorser is written but no specific endorsee is named, making it payable to the bearer.

Bearer Paper

Bearer paper refers to negotiable instruments, such as checks or bonds, that entitle payment to whoever holds the document.