1. In quantitative analysis, what does the term "linear regression" refer to? a) A method of predicting future sales b) A statistical technique used to analyze the relationship between two variables c) A way to increase the accuracy of financial forecasts d) An approach to reducing business risks Correct answer: b) A statistical technique used to analyze the relationship between two variables Rationale: Linear regression is a statistical method used to understand the relationship between two variables - one dependent and one independent. 3. Which of the following financial ratios measures a company's ability to cover its short-term obligations with its current assets? a) Debt-to-equity ratio b) Current ratio c) Return on equity d) Operating margin Correct answer: b) Current ratio Rationale: The current ratio is a measure of a company's ability to cover its short-term debt obligations with its current assets. 4. What is the purpose of conducting a trend analysis in quantitative analysis? a) To predict future economic conditions b) To identify patterns and changes in data over time c) To evaluate current investment opportunities d) To measure the profitability of a company Correct answer: b) To identify patterns and changes in data over time Rationale: Trend analysis helps in understanding how data points change over time to identify trends and make informed decisions based on those patterns. 5. Which of the following statistical techniques is used to analyze the relationship between multiple variables?