A Colleague Generates a Best-Fit Line Through a Set of Data

question 14

Multiple Choice

A colleague generates a best-fit line through a set of data points and asks you to confirm its usefulness and goodness-of-fit.You perform a root-mean-squared-error (RMSE) calculation and come up with a very small RMSE value.Based on this value you determine that the best-fit line

• A) deviates far from the data points.
• B) fits the data well.
• C) is useless for interpolation but valid for extrapolation.
• D) predicts a value that is too far from the actual value.

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Definitions:

Corporation

A legal entity that is separate from its owners, with the ability to own assets, incur liabilities, and sell stocks.

Issuing Stock

The process by which a company distributes its shares to investors, thereby raising capital in exchange for ownership interests in the company.

Corporation

A legal entity that is separate from its owners and shareholders, which can own assets, incur liabilities, and conduct business.

Government Entity

An organization operated by the government.