If the Income Elasticity of a Good Is Negative, the Good

question 113

Multiple Choice

If the income elasticity of a good is negative, the good is a(n) _____ good.

• A) normal
• B) luxury
• C) inferior
• D) superior

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Definitions:

SSR

The sum of squared residuals, a measure of the discrepancy between the data and an estimation model.

SSE

The sum of squared errors, which measures the total deviation of observed values from their mean in statistical models.

Confidence Interval

The interval estimate of the mean value of y for a given value of x.

Linear Regression Model

A statistical technique that models and examines the linear relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.