To Obtain the Slope Estimator Using the Least Squares Principle

question 6

Multiple Choice

To obtain the slope estimator using the least squares principle, you divide the

• A)sample variance of X by the sample variance of Y.
• B)sample covariance of X and Y by the sample variance of Y.
• C)sample covariance of X and Y by the sample variance of X.
• D)sample variance of X by the sample covariance of X and Y.

Recognize the role and impact of small businesses in the economy.

Analyze scenarios to identify key factors in business success or failure.

Understand the concept of economies of scale and its benefits.

Identify the characteristics and significance of microbusinesses.

---

Definitions:

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or completion, used to assess inventory value under GAAP standards.

Aging of Accounts Receivable

A method to manage and review accounts receivable based on the length of time invoices have been outstanding, typically to identify and act on overdue payments.

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.

Uncollectible Accounts

Accounts receivable that are unlikely to be recovered and are considered bad debts.