What Is a Disadvantage of Estimating a Trend Line Equation

question 116

Multiple Choice

What is a disadvantage of estimating a trend line equation by "eye-balling" the best fitting line to a
Scatter diagram?

• A) Provides quick approximations
• B) Is subject to human error
• C) Provides accurate forecasts
• D) Is too difficult to calculate
• E) Requires graph paper

Grasp the application of simple linear regression for prediction and analysis.

Understand the properties and assumptions underlying the random error term in regression models.

Distinguish between different types of relationships indicated by correlation coefficients.

Understand the role of residuals in validating regression models.

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