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:

Lead Time

Lead time is the duration between the initiation and completion of a process, often used in reference to the time taken from ordering to receiving goods.

ROP

Refers to Reorder Point, a inventory management technique indicating the minimum level before a new order must be placed.

Continuous Review Policies

Inventory management strategies that monitor inventory levels continuously to decide when to reorder.

Safety Inventory

Additional stock kept in reserve to protect against variability in demand or supply chain disruptions.