In Regression,the Line That Runs Through the Points on a Scatter

question 29

True/False

In regression,the line that runs through the points on a scatter diagram is positioned to minimize the vertical distances away from the line of the various points because of the least squares criterion.

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Definitions:

Tax

A mandatory monetary contribution or different sort of tax levied on a taxpayer by a government entity to finance government expenditure and assorted public costs.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is distorted.

Equilibrium

An economic situation in which no individual would be better off doing something different.

Perfectly Inelastic

A situation where the demand or supply for a good is completely unresponsive to changes in price.