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

question 7

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:

Total Cost

The sum of all costs incurred by a business in producing a given level of output, including fixed and variable costs.

Diminishing Marginal Returns

Describes a point in production where the addition of one more unit of input results in a less than proportional increase in output.

Per-unit Costs

Refer to the average cost for each unit of a product or service that is produced, including all relevant expenses.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.