The Objective Function in Regression Analysis Is
A) $$\operatorname { MIN } \sum _ { i = 1 } ^ { n } \left( \hat { Y } _ { i } - Y _ { i } \right)$$

question 19

Multiple Choice

The objective function in regression analysis is

• A)\[\operatorname { MIN } \sum _ { i = 1 } ^ { n } \left( \hat { Y } _ { i } - Y _ { i } \right)\]
• B)\[\operatorname { MIN } \sum _ { \mathrm { i } = 1 } ^ { \mathrm { n } } \left( \hat { \mathrm { Y } } _ { \mathrm { i } } - \mathrm { Y } _ { \mathrm { i } } \right) ^ { 2 }\]
• C)\[\operatorname { MIN } \sum _ { i = 1 } ^ { n } \left( \hat { Y } _ { i } - X _ { i } \right)\]
• D)\[\operatorname { MIN } \sum _ { i = 1 } ^ { n } \left( Y _ { i } - \hat { Y } _ { i } \right) ^ { 2 }\]

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Definitions:

LIFO Reserve

The difference between the cost of inventory calculated under the Last-In, First-Out (LIFO) method and its cost calculated under the First-In, First-Out (FIFO) method.

Historical Cost

The original monetary value of an asset or investment at the time of its purchase, disregarding inflation over time.

Accounting Principle

Guidelines and standards intended to bring consistency and integrity to the financial reporting process.

Cost Or Market

An inventory valuation method that requires inventory to be recorded at the lower of its historical cost or its current market value.