A Simple Regression Model Developed for 12 Pairs of Data

question 106

Multiple Choice

A simple regression model developed for 12 pairs of data resulted in a sum of squares of error, SSE = 246.The standard error of the estimate is _______.

• A)24.6
• B)4.96
• C)20.5
• D)4.53
• E)12.3

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Definitions:

Expansionary Gap

The situation that occurs when an economy's output exceeds its potential output, indicating overheating.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced by an economy in a specific period, expressed in real terms.

Active Approach

Strategies or policies actively implemented by governments or institutions to manage economic variables or outcomes, such as inflation or unemployment.

Passive Approach

A strategy or method that involves minimal intervention, often referring to investment strategies or management styles.