Given the Least Squares Regression Line, , Which Statement

question 30

Multiple Choice

Given the least squares regression line, , which statement is true?

• A) The relationship between X and Y is positive.
• B) The relationship between X and Y is negative.
• C) As X increases, so does Y.
• D) As X decreases, so does Y.
• E) There is no relationship between X and Y.

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Definitions:

Price Elasticity

An assessment of the sensitivity of the demand for an item to shifts in its cost.

Strawberry Ice Cream

A frozen dessert made from dairy ingredients such as milk and cream, sweetened and flavored with strawberries.

Price-elastic

A characteristic of a good or service indicating a high sensitivity to changes in its price, where a small price change leads to a significant change in quantity demanded or supplied.

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to changes in price.