Find the Equation of the Regression Line by Letting Row

question 18

Essay

Find the equation of the regression line by letting Row 1 represent the x-values and Row 2 represent the
y-values. Now find the equation of the regression line letting Row 2 represent the x-values and Row 1
represent the y-values. What effect does switching the explanatory and response variables have on the
regression line? $$\begin{array} { l | c | c | c | c | c | c | c | c | c | c } \text { Row 1 } & - 5 & - 3 & 4 & 1 & - 1 & - 2 & 0 & 2 & 3 & - 4 \\\hline \text { Row 2 } & - 10 & - 8 & 9 & 1 & - 2 & - 6 & - 1 & 3 & 6 & - 8\end{array}$$

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Definitions:

Inefficient Outcomes

Situations where resources are not allocated optimally, leading to wasted resources or unfulfilled potential in an economy.

Invisible Hand

A metaphor for the unseen forces that move the free market economy through competition for scarce resources.

Government's Economic Activity

Refers to the various ways governments influence or directly participate in the national economy, including taxation, spending, and regulation.

Economic Efficiency

The optimal allocation of resources to maximize the production of goods and services. Efficiency is achieved when no additional output can be gained without increasing the amount of inputs.