A Fitted Regression Profit = 262 + 1

question 18

Multiple Choice

A fitted regression Profit = 262 + 1.51 Sales (all variables in thousands of dollars) was estimated from a random sample of 15 small coffee kiosks.We can say that

• A)the slope is too small to be significant.
• B)the intercept does not seem reasonable.
• C)the R2 will be low due to small sample size.
• D)predictions are likely to be underestimated.

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Definitions:

Bond Yield

The return an investor realizes on a bond, calculated by the coupon payments relative to the market price of the bond.

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock, representing its worth at issuance or maturity.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.