If All the Points in a Scatter Diagram Lie on the Least

question 133

Multiple Choice

If all the points in a scatter diagram lie on the least squares regression line,then the coefficient of correlation must be:

• A) 1.0
• B) -1.0
• C) either 1.0 or -1.0
• D) 0.0

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Definitions:

Long-Run Adjustments

Refers to changes that firms in an industry make in response to economic opportunities or constraints, involving adjustments in production capacity or resource utilization over time.

Marginal Revenue

The extra revenue obtained by selling an additional unit of a product or service.

Upsloping Line

A graphical representation indicating positive correlation between two variables; as one variable increases, so does the other.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, usually downward sloping.