In the Language of Economics,which of the Following Would Be

question 25

Multiple Choice

In the language of economics,which of the following would be defined as investment?

• A) The purchase of a U.S.savings bond
• B) The purchase of 100 shares of Ford Motor Company stock
• C) The deposit of $1,000 into a savings account
• D) The purchase of $500 worth of gold
• E) The accumulation of inventories by a firm

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Definitions:

Regression Line

A line of best fit through a scatterplot of data points in regression analysis, showing the relationship between the independent and dependent variables.

Positive

A term often used in statistics to denote a value or outcome that is above zero or indicates the presence of a condition or characteristic.

Least Squares

A mathematical approach used to approximate the solution of overdetermined systems, minimizing the sum of the squares of the differences between observed and estimated values.

Squared Deviations

The square of the difference between each data point and the mean, used in variance calculation.