In the Simple Linear Regression Model, the ____________ Accounts for the Variability

question 1

Multiple Choice

In the simple linear regression model, the ____________ accounts for the variability in the dependent variable that cannot be explained by the linear relationship between the variables.

• A)constant term
• B)error term
• C)model parameter
• D)residual

---

Definitions:

Investment Center

A division or unit within an organization that is directly responsible for generating its own revenue as well as controlling its costs, and therefore, its profits.

Authority

The ability or entitlement to dictate actions, decide on matters, and demand adherence.

Decision

The act of making a choice or coming to a conclusion.

Investment Turnover

A financial ratio that measures how effectively a company uses its assets to generate sales revenue; a higher turnover indicates better performance.