Caution must be exercised in using regression models for ...

[hubes95]

Caution must be exercised in using regression models for prediction when:
 a. the value of the independent variable lies inside the range of observations from which the model was estimated
  b. the value of the independent variable lies outside the range of observations from which the model was estimated
  c. diminishing returns are present
  d. the existence of saturation levels are present
  e. none of the above

Question 2

Transfer prices
 a. are an accounting device to allocate the costs and revenues of intermediate products across divisions
  b. increase the 'profits' of the profit center producing the intermediate product when they rise
 c. decrease the 'profits' of the profit center using the intermediate product when they rise
 d. all of the above

[spencer.martell]

Answer to Question 1

b

Answer to Question 2

d

[hubes95]

Excellent

[ultraflyy23]

Gracias!