The Method of Least Squares

question 44

Multiple Choice

The method of least squares

• A) uses the results of regression analysis to construct a cost formula.
• B) is the least accurate method.
• C) analyzes a cost relationship by plotting the data points on a graph.
• D) can easily be calculated by hand.

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Definitions:

Effect Size

A quantitative measure of the magnitude of a phenomenon or the strength of the relationship between variables.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, typically set at 0.05 or 5%.

Degrees of Freedom

Represents the number of independent pieces of information available to estimate another piece of information or parameter in a dataset.

Test Statistic

A value calculated from sample data during a hypothesis test, used to decide whether to reject the null hypothesis.