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CIMA BA1 Exam Overview :

Exam Name:	Fundamentals of Business Economics
Exam Code:	BA1 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	468 Q&A's	Shared By:	artemis

Question 68

A commercial airline uses its database to develop the following regression model to predict the cost of a flight Y (in dollars) by number of passengers:

Y = 1,570 +40 7x

Which of the following statements is correct in relation to the airline'?

Options:

The cost of a flight will increase by $40.7 when an additional passenger is added to the flight.

The regression model makes accurate predictions for this commercial airline, therefore it will provide good forecasts for other commercial airlines.

The positive intercept in the model indicates a positive relationship between the cost of a flight and the number of passengers.

If each pair of data points is plotted on a graph with Y on the vertical axis and X on the horizontal axis, there will be a downward sloping line.

Discussion

Question 69

Betsy's Fish Foods Pic. has issued shares in a prospectus.

Which of the following are benefits of selling shares in this manner?

Select ALL that apply.

Options:

It allows companies to open up its investor base

It allows more investors to receive profits in the form of dividends from the company

It allows the company to sell shares at a discounted price

It allows the company to sell shares to larger private firms who can invest more money into the company

It allows the company to sell second-hand shares

Discussion

Question 70

The manger of a branch of retailer Brilliant Buys wants to calculate the correlation between employee happiness and productivity. He has ranked each of the 10 employees at his branch in both fields, as shown to the left.

Questions 70

What degree of correlation is there between productivity and happiness at Brilliant Buys, using Spearman's coefficient?

Options:

High correlation

Moderate correlation

Low correlation

No correlation

Discussion

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