Bob Thinks There Is Something Wrong with Excel's Fitted Regression

question 65

Multiple Choice

Bob thinks there is something wrong with Excel's fitted regression.What do you say?

• A)The estimated equation is obviously incorrect.
• B)The R2 looks a little high but otherwise it looks OK.
• C)Bob needs to increase his sample size to decide.
• D)The relationship is linear,so the equation is credible.

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Definitions:

Sales Considered

Refers to the total revenue or the amount of sales transactions recognized by a company within a certain period.

Uncollectible Accounts

Receivables that are deemed uncollectible and are written off as a loss due to the inability to collect the funds.

Allowance Account

An account used to offset the gross accounts receivable by the amount estimated to be uncollectible.

Accounts Receivable

Unsettled payments from customers to a business for goods delivered or services carried out.