When the Estimated Regression Line Is Obtained Via the Principle $y _ { i } - \hat { y } _ { i }$

question 52

Short Answer

When the estimated regression line is obtained via the principle of least squares, the sum of the residuals $y _ { i } - \hat { y } _ { i }$ (i = 1, 3, …….., n) should in theory be __________.

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Definitions:

Prepaid Rent

An expense that is paid in advance for the use of property or equipment, recognized over the period of usage.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the periods in which they actually occurred.

Rent Expense

The cost incurred by a business to utilize property or equipment for operational purposes, recognized as an expense on the income statement.

Accrual Adjusting Entry

An accounting entry made to record revenues that have been earned or expenses that have been incurred but not yet recorded through the normal transaction process.