Which of the Following Is True of the Best-Fitting Line

question 31

Multiple Choice

Which of the following is true of the best-fitting line?

• A)It establishes statistical significance.
• B)It increases as the correlation decreases.
• C)It is rarely useful for prediction.
• D)It minimizes residuals.

---

Definitions:

Net Present Value

The calculation of the present value of an investment's expected cash inflows and outflows, used to assess the profitability of an investment or project.

Project Life

The duration from the initiation to the completion of a project, encompassing all stages of its development and execution.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Payback Period

This is the duration required to recoup the funds expended in an investment.