A Linear Regression Model Estimating the Relationship Between Expenditure on Imports

question 30

Essay

A linear regression model estimating the relationship between Expenditure on Imports and Annual household income has an r² value of 0.81.
Interpret r².

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Definitions:

Price Floor

A government- or authority-set minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.

Equilibrium Price

A price level where the demand for a product matches the supply, ensuring that every buyer finds a seller and vice versa, leading to market stability.

Temporary Surplus

A situation where the supply of a product exceeds its demand for a short period of time.

Usury Laws

Usury laws are regulations governing the amount of interest that can be charged on loans, aimed at preventing exorbitant or unfair interest rates.