The Least Squares Regression Line Minimizes the Sum of the

question 103

Multiple Choice

The least squares regression line minimizes the sum of the

• A) differences between actual and predicted Y values.
• B) absolute deviations between actual and predicted Y values.
• C) absolute deviations between actual and predicted X values.
• D) squared differences between actual and predicted Y values.
• E) squared differences between actual and predicted X values.

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Definitions:

Quarterly Payments

Payments made four times a year at three-month intervals, often used in loan repayments.

Semi-Annually Compounded

Refers to the process of calculating and adding interest to a principal sum twice a year.

Weekly Payments

Payments that are made once every week, often used in employment or loan repayment plans.

Annually Compounded

Describes the process where interest is added to the principal sum of a loan or investment once per year, allowing the interest to accumulate over time.