If a Data Set Has a Relationship That Is Best

question 141

Multiple Choice

If a data set has a relationship that is best described by a linear model, than the residual plot will

• A) be an unknown shape.
• B) have no pattern with a correlation near 0.
• C) none of these
• D) also have a linear pattern with a similar correlation.
• E) have a curved pattern, like a parabola.

---

Definitions:

Economies of Scope

Cost advantages that a business experiences by producing a wider variety of products, rather than specializing in the production or provision of a single product or service.

Diseconomies of Scale

A point at which a company grows so large that the costs per unit increase with the increase in production.

Experience Curve Effects

The reduction in unit costs of production as output increases, typically due to gained efficiencies and learning over time.

Regression Analysis

A statistical method used to examine the relationship between a dependent variable and one or more independent variables.