Suppose That X Is Used to Predict Y and That

question 72

Multiple Choice

Suppose that X is used to predict Y and that both are in Z-score form.Which of the following is always true regarding the predicted Y score?

• A) It is larger than the obtained X score.
• B) It is smaller than the X score.
• C) It is closer to 0 than the obtained Y score.
• D) It is closer to 0 than the X score.

---

Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, service, or commodity, intended to protect consumers from high prices.

Persistent Shortage

A situation where the demand for a good or service consistently exceeds its supply, over a significant period of time.

Deadweight Loss

The loss of economic efficiency when the equilibrium for a good or a service is not achieved or is not achievable.