Bivariate Regression Analysis Is Defined as a Predictive Analysis Technique

question 58

Multiple Choice

Bivariate regression analysis is defined as a predictive analysis technique in which:

• A)a pattern is identified over time and projected into the future.
• B)a relationship that exists across time is observed to make a prediction.
• C)one variable is used to predict the level of another by use of the straight-line formula.
• D)one variable is used to predict the level of another by use of a scatter diagram.
• E)a relationship that exists at one point in time is observed to make a prediction.

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Definitions:

Market Components

The different elements that make up a financial market, including stocks, bonds, currencies, commodities, and derivatives.

Expected Returns

The anticipated return on an investment, estimating the average of probability-weighted returns for a given asset.

Probability Distribution

A probability distribution is a mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Variability

The extent to which data points in a set differ from each other and from the mean of the set; a measure of dispersion or volatility.