Amelia Used a Random Sample of 100 Accounts Receivable to Estimate

question 53

Multiple Choice

Amelia used a random sample of 100 accounts receivable to estimate the relationship between Days (number of days from billing to receipt of payment) and Size (size of balance due in dollars) . Her estimated regression equation was Days = 22 + 0.0047 Size with a correlation coefficient of .300. From this information we can conclude that:

• A)9 percent of the variation in Days is explained by Size.
• B)autocorrelation is likely to be a problem.
• C)the relationship between Days and Size is significant.
• D)larger accounts usually take less time to pay.

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Definitions:

Contributorily Negligent

A legal doctrine where a plaintiff's own negligence partially contributes to the harm they suffered.

Occupiers' Liability Act

Legislation that defines the duty of care owed by those who control land or buildings towards individuals who enter or use their premises, to ensure safety and prevent harm.

Rule in Rylands v. Fletcher

A legal principle establishing liability for harm caused by the escape of something likely to do mischief from one's land.

Strict Liability

A legal principle where the defendant is liable for the consequences of an action, regardless of intent or negligence.