An Escalator Clause Provides for an Increase, as Well as a Decrease

question 7

True/False

An escalator clause provides for an increase, as well as a decrease, in price if costs change.

---

Definitions:

Residual

The difference between the observed value and the estimated value of the quantity of interest.

Correlation Coefficient

Quantitative assessment designed to determine the magnitude and directionality of a linear association between two variables.

Regression Analysis

A statistical method for estimating the relationships among variables, particularly the relationship between a dependent variable and one or more independent variables.

SST

Total Sum of Squares, a measure in statistical analysis that quantifies the total variation within a dataset.