In the Regression Equation = B₀ + B₁x

question 6

Multiple Choice

In the regression equation = b₀ + b₁x + b₂dx with a dummy variable d,when d changes from 0 to 1,the change in the slope of the corresponding lines is given by ______.

• A) b₀
• B) b₀ + b₁
• C) b₂
• D) b₀ + b₂

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Definitions:

Responsibility Centers

These are parts or segments of a business for which individual managers are responsible, usually in terms of costs, revenues, or investment.

Cost Center

A business unit or department within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.

Profit Center

A segment or division within a company that is responsible for generating its own revenues and profits, and is evaluated based on its profitability.

Investment Center

A business unit or segment whose manager has control over cost, revenue, and investments in assets, and is evaluated on profitability and return on investment.