A Scatterplot Of $\frac { 1 } { \sqrt { y } }$

question 3

Multiple Choice

A scatterplot of $\frac { 1 } { \sqrt { y } }$ vs. x shows a strong positive linear pattern. It is probably true that

• A) accurate predictions can be made for \(\mathrm { Y }\) even if extrapolation is involved.
• B) the correlation between \(\mathrm { X }\) and \(\mathrm { Y }\) is near \(+ 1.0\).
• C) large values of \(X\) are associated with large values of \(Y\).
• D) the scatterplot of \(\mathrm { Y }\) vs \(\mathrm { X }\) also shows a linear pattern.
• E) the residuals plot for regression of \(Y\) on \(X\) shows a curved pattern.

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Definitions:

Price Elasticity

An assessment of the responsiveness of the demand for a product to variations in its price.

Supply

The total amount of a specific good or service that is available to consumers at a given price level and time.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in the consumer's income.

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.