The Assumption That X Has Full Column Rank Implies That

question 36

Multiple Choice

The assumption that X has full column rank implies that

• A)the number of observations equals the number of regressors.
• B)binary variables are absent from the list of regressors.
• C)there is no perfect multicollinearity.
• D)none of the regressors appear in natural logarithm form.

---

Definitions:

Variable Cost Method

A cost accounting method that only applies variable costs to inventory, excluding fixed costs from cost of goods sold calculations.

Markup

Markup refers to the difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Cost-Plus Approach

A pricing strategy where a fixed percentage or a fixed amount is added to the cost of producing a product to determine its selling price.

Markup

The amount added to the cost price of goods to cover overhead and profit.