Refer to the Information Provided in Table 21

question 56

Multiple Choice

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The error for point B is equal to

• A) -3.
• B) -2.
• C) +2.
• D) +3.

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Definitions:

Straight-Line Depreciation

A framework for spreading out the cost of a physical asset across its useful lifespan in identical yearly contributions.

Mutually Exclusive

Mutually exclusive is a statistical term describing two or more events that cannot occur simultaneously, often used in decision making or project selection scenarios.

Internal Rate of Return (IRR)

The Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of potential investments by calculating the discount rate that makes the net present value of all cash flows from the investment equal to zero.

Straight-Line Depreciation

A calculation for distributing the expense of a tangible asset over its lifespan in uniform annual payments.