1. Three criteria to use in identifying cost drivers from the potentially large set of independent variables that can be included in a regression model are:

A.14.08 percent

B. 16.09 percent

C.11.45 percent

D. 22.00 percent

E. None of the choices are correct

2. Curtis invests $250,000 in a city of Athens bond that pays 7 percent interest. Alternatively, Curtis could have invested the $250,000 in a bond recently issued by Initech, Incorporated that pays 9 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much explicit tax would Curtis incur on interest earned on the Initech, Incorporated bond?

A. $17,500

B. $5,400

C. $4,200

D. $12,600

E. None of the choices are correct.