Analysis of sales (the independent variable) to cash flows (the dependent variable) data for linear regression produces an intercept of -$124,666 and a slope of 0.1823. Which correctly explains the slope value? If sales rise by one-dollar, net cash flow would increase by 18.23% 1823 is multiplied by the current period actual and (1 - 0.1823) is multiplied by the current period forecast If sales drop by one-dollar, net cash flow would drop by $0.1823 23% of the change in net cash flow is explained by the change in net sales
Analysis of sales (the independent variable) to cash flows (the dependent variable) data for linear regression produces an intercept of -$124,666 and a slope of 0.1823. Which correctly explains the slope value? If sales rise by one-dollar, net cash flow would increase by 18.23% 1823 is multiplied by the current period actual and (1 - 0.1823) is multiplied by the current period forecast If sales drop by one-dollar, net cash flow would drop by $0.1823 23% of the change in net cash flow is explained by the change in net sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Analysis of sales (the independent variable) to
cash flows (the dependent variable) data for linear regression produces an intercept of -$124,666 and a slope of 0.1823. Which correctly explains the slope value?
- If sales rise by one-dollar, net cash flow would increase by 18.23%
- 1823 is multiplied by the current period actual and (1 - 0.1823) is multiplied by the current period
forecast - If sales drop by one-dollar, net cash flow would drop by $0.1823
- 23% of the change in net cash flow is explained by the change in net sales
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