Assumption


1. In Exhibit A-7, the slope of the straight line A–D is

a. 0.
b. 1.
c. 1/2.
d. -1.

2. Straight line A–D in Exhibit A-7 shows that

a. increasing value for X will increase the value of Y.
b. increasing value for X will decrease the value of Y.
c. increasing values for X does not affect the value of Y.
d. All of the answers above are correct.

3. Assume there is a relationship between two variables and the other-variables-held constant assumption (ceteris paribus) is relaxed. We would expect thatthe line representing this relationship would

a. change from inverse to direct.
b. change from direct to inverse.
c. have a greater number of data points.
d. change its location.

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