A Linear Regression Equation of the Form Y = a

question 2

Multiple Choice

a linear regression equation of the form Y = a + bX,the intercept parameter a shows

• A)the value of X when Y is zero.
• B)the value of Y when X is zero.
• C)the amount that Y changes when X changes by one unit.
• D)the amount that X changes when Y changes by one unit.

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Definitions:

Retained Earnings

Retained earnings represent the portion of net income left after dividends have been paid to shareholders, which is then reinvested in the business.

Static Theory

A concept in economic theory that assumes conditions remain constant over time.

Capital Structure

The mix of debt and equity financing that a company uses to fund its operations and growth.

Financial Distress

A situation where a company is struggling to meet its financial obligations, which may lead to bankruptcy if not adequately addressed.