In Simple Linear Regression

question 9

Multiple Choice

In simple linear regression,

• A)The correlation coefficient changes if you switch the independent and dependent variables.
• B)It doesn't matter which variable is dependent and which is independent.
• C)Only the independent variable can be dichotomous.
• D)Only the dependent variable can be dichotomous.
• E)Both variables can be dichotomous.

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Definitions:

Toll Roads

Highways or sections of highways for which users are required to pay a fee for access or passage.

Consumer Surplus

The discrepancy between what consumers are prepared and can afford to spend on a product or service versus what they end up paying.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received when it is sold.

Economic Efficiency

The optimal allocation of resources to maximize productivity and meet consumer demand most effectively.