A Least Squares Regression Line

question 130

Multiple Choice

A least squares regression line

• A) can be used to predict a value of y if the corresponding x value is given.
• B) implies a cause-and-effect relationship between x and y.
• C) can only be determined if a good linear relationship exists between x and y.
• D) ensures that the predictions of y outside the range of the values of x are valid.

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Definitions:

Inventory System

A method for keeping track of the quantity, location, and status of goods a company has in stock.

Revenue Recorded

The process of documenting income earned by a business during a specific period, usually upon the delivery of goods or services.

Cost Flow Assumption

The method used to allocate costs to inventory and cost of goods sold, such as FIFO, LIFO, or weighted average.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure of central tendency.