Given the Least Squares Regression Line Y-Hat = 3

question 46

Multiple Choice

Given the least squares regression line y-hat = 3.52 - 1.27x, and a coefficient of determination of 0.81, the coefficient of correlation is:

• A) -0.85.
• B) 0.85.
• C) -0.90.
• D) 0.90.

Calculate price elasticity of demand using the midpoint formula.

Comprehend the influence of price elasticity on total revenue.

Apply concepts of elasticity to real-world scenarios involving government policy and business strategy.

Recognize the difference between slope and elasticity.

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's main operations.

Investment Turnover

A ratio measuring the ability of a company to generate sales or revenue from its investments, usually indicating how efficiently the investments are used.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Profit Margin

A ratio or percentage that measures the profitability of a business, calculated by dividing net income by revenue.