A Linear Regression Line Is Assumed To

question 41

Multiple Choice

A linear regression line is assumed to.

• A)curve slightly upwards at the highest value of X
• B)be a straight line relation throughout the range of X values
• C)curve slightly downwards at the lowest value of X
• D)assume a negative slope near zero if the correlation coefficient is negative

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, and insurance premiums.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.