In the Least Squares Equation, Y' = 10 + 20X

question 147

Multiple Choice

In the least squares equation, Y' = 10 + 20X the value of 20 indicates

• A) the Y intercept.
• B) for each unit increased in X, Y increases by 20.
• C) for each unit increased in Y, X increases by 20.
• D) None of these statements are correct.

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Definitions:

Progressive Tax

A tax system in which the tax rate increases as the taxable base amount increases, meaning higher earners pay a higher percentage of their income in taxes.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taken as tax.

Income Increases

A rise in the amount of money received, especially on a regular basis, by an individual or group.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, thereby imposing a higher percentage rate on higher-income earners.