In a Simple Linear Regression Model, Y = ß₀

question 25

Multiple Choice

In a simple linear regression model, y = ß₀ + ß₁x + ε B₁ represents the

• A)intercept.
• B)slope of the true regression line.
• C)mean value of x.
• D)error term.

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Definitions:

Production Possibilities Frontier

A curve that shows the maximum efficient production level of one good for a given level of production for another, assuming fixed resources and technology.

Slope

In mathematics and economics, slope refers to the steepness, gradient, or inclination of a line, indicating the rate of change between two variables.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).

Inefficient

A situation where resources are not utilized in the best possible way, leading to wasted inputs or the capability to produce more for less not being exploited.