Consider the Following Regression Equation: Y = β₀+β₁x₁+…β_kx_k+ U in Which

question 16

Multiple Choice

Consider the following regression equation: y = β₀+β₁x₁+…β_kx_k+ u In which of the following cases,the dependent variable is binary?

• A)y indicates the gross domestic product of a country
• B)y indicates whether an adult is a college dropout
• C)y indicates household consumption expenditure
• D)y indicates the number of children in a family

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Definitions:

Short-Term Note

A debt security that matures in a short period, typically less than one year.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes under the terms of an earlier invoice.

Adjusted Cash Balance

The cash balance of a company after adjusting for outstanding checks and deposits in transit, giving a more accurate representation of available funds.

Notes Receivable

A financial asset representing a promise to pay a specific amount of money, plus interest, to the holder of the note at a future date.