Application of the Least Squares Method Results in Values of the Y-Intercept

question 15

Multiple Choice

Application of the least squares method results in values of the y-intercept and the slope that minimizes the sum of the squared deviations between the​

• A) ​observed values of the independent variable and the predicted values of the independent variable.
• B) ​observed values of the independent variable and the predicted values of the dependent variable.
• C) ​observed values of the dependent variable and the predicted values of the dependent variable.
• D) ​observed values of the dependent variable and the predicted values of the independent variable.

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Definitions:

Depreciation Period

The estimated useful life of a tangible asset over which the cost of the asset is spread for accounting and tax purposes.

Money Distribution

The process of disbursing or allocating financial resources, often by a corporation or governmental entity.

Partnership Liability

The financial obligations or debts for which a partnership is responsible, which can affect the partners' individual tax situations.

Partnership Interest

An ownership share in a partnership, representing a partner's stake in the assets and operations of the business.