Which of the Following Correctly Describes a True Regression Line

question 74

Multiple Choice

Which of the following correctly describes a true regression line?

• A) It is represented by the equation E(y) =.
• B) It is a line calculated from sample data by the method of least squares.
• C) The values ofandfound in the equation of the true regression line represent the line's slope and intercept, respectively.
• D) The response y is related to the independent variable x.

---

Definitions:

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Payback Method

An investment appraisal technique that calculates the amount of time required for an investment to generate cash flows sufficient to recover its initial cost.

Cash Inflows

Money or equivalent value received by a business, often from operations, investments, or financing activities.

Discounting

The process of determining the present value of a future amount of money or stream of income.