In Simple Linear Regression, the Least Squares Line Fit to a Sample

question 15

True/False

In simple linear regression, the least squares line fit to a sample of data will maximize the number of data points that will fall along that line.

---

Definitions:

Conversion Ratio

The specific quantity of one asset or liability that can be exchanged for another, often used in the context of convertible securities.

Risk-free Rate

The estimated rate of profit for a no-risk investment, usually depicted by the earnings from government securities.

American Call

An option contract that gives the holder the right to buy a specific asset at a set price anytime before the expiration date.