Statistics and Regression Analysis

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What is the interpretation of the regression equation ŷ = 30000 + 4x?

An increase of $1 in advertising is associated with an increase of $4 in sales.

An increase of $1 in advertising is associated with an increase of $34,000 in sales.

An increase of $4 in advertising is associated with an increase of $4000 in sales.

An increase of $1 in advertising is associated with an increase of $4000 in sales. (correct)

What does the symbol β1ˆ represent in a regression equation?

The intercept of the regression line

The slope of the regression line (correct)

The coefficient of determination

The residual of the regression

What type of test is used to determine the statistical significance of a regression parameter?

Jarque-Bera test

F-test

Chi-square test

Student's t-test (correct)

What is the purpose of testing the statistical significance of a regression parameter?

To determine the significance of the regression parameter Signup and view all the answers

What is the null hypothesis in a test of the statistical significance of a regression parameter?

β1 = 0 Signup and view all the answers

What does a statistically significant regression parameter indicate?

There is a significant relationship between the variables Signup and view all the answers

What is the cost of annual interest if the company uses the method of equal installments?

57,240 tugriks Signup and view all the answers

Which of the following is true?

Revenues exceed expenses Signup and view all the answers

Which financial statement reports assets, liabilities, and equity?

Statement of Financial Position Signup and view all the answers

What is NOT a type of accrual?

Cash payment Signup and view all the answers

What is the result of the company's operations for the year?

Net income of $70,000 Signup and view all the answers

What is the balance of the owner's capital account at the end of the year?

$85,000 Signup and view all the answers

What does a coefficient of determination of 95% indicate?

95% of the variation in the dependent variable is explained by the independent variable Signup and view all the answers

What is a characteristic of a multiple regression equation?

There is only one dependent variable Signup and view all the answers

What is the formula for the total sum of squares in a regression model?

∑(yi - ȳ)2 Signup and view all the answers

What is the sum of squares of the residuals divided by in a regression model?

The sum of squares of the regression Signup and view all the answers

What is the interpretation of the coefficient B1 in a simple linear regression equation Yi = B0 + B1·Xi?

For a one-unit change in Xi, Yi changes by B1 units Signup and view all the answers

What does the R2 term measure in a regression model?

The proportion of the variance in the dependent variable that is predictable from the independent variable Signup and view all the answers

What is the range of the intercept coefficient β1 in the regression equation?

−0.44≤β1≤1.4 Signup and view all the answers

What is the predicted value of y when x0 = 3 in the regression equation yˆi=4+5.6⋅xi−1.5⋅x2i?

7.3 Signup and view all the answers

What is the value of the determinant coefficient in the given multiple regression equation?

0.93 Signup and view all the answers

What is the formula for the trend model TRˆt=16.23+0.52t+0.37∙t2?

TRˆt=16.23+0.52t+0.37∙t2 Signup and view all the answers

What is the sum of the squares of the residuals in the given multiple regression equation?

400 Signup and view all the answers

What is the number of observations in the given data set for the regression equation yˆi=4+5.6⋅xi−1.5⋅x2i?

None of the above Signup and view all the answers

What is the difference in the value of inventory using FIFO and LIFO methods?

3,700 Signup and view all the answers

What amount will the bank receive from the sale of the 3-month bill with 8% annual interest?

401,333 Signup and view all the answers

How will the temporary disability benefit of 148,500 be recorded in the journal?

Debit Salaries and Wages Expense 82,500, debit VAT Payable 66,000, and credit Provision for Temporary Disability Benefits 148,500 Signup and view all the answers

What is the net realizable value of accounts receivable after deducting the 2% doubtful accounts?

690,000 Signup and view all the answers

What is the correct method of inventory valuation when the last-in, first-out (LIFO) method is used?

The most recent purchases are assumed to be the first to be sold Signup and view all the answers

What is the gross profit when the sales revenue is 15,000,000 and the cost of goods sold is 12,000,000?

3,000,000 Signup and view all the answers