If a Scattergraph Contains Points That Do Not Fall in a Perfect

question 12

Multiple Choice

If a scattergraph contains points that do not fall in a perfect line:

• A) the relationship between the variables is not good enough to warrant fitting a line to the data.
• B) this is an indication that there is no relationship whatsoever between the variables.
• C) the visual fit method and high-low methods should not be used, but least-squares regression can be used.
• D) a straight line can still be used to approximate the relationship if a general linear trend can be discerneD.
• A straight line may still be used to approximate the relationship if a general linear trend is discerneD.
• The relationship need not be perfect to approximate a relationship, as long as there is a general linear trenD.

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Definitions:

Balance of Trade

The difference between the value of our imports and our exports.

Trade Problem

Issues or challenges that arise in the process of exchange of goods, services, or both between countries.

High Protective Tariffs

Elevated taxes imposed on imported goods to protect domestic industries from foreign competition.

Frederic Bastiat

A French economist and writer known for his theories on free markets and the unseen economic consequences of government intervention.