What Criterion Is Used to Establish the Best "Fit" of a Straight

question 5

Multiple Choice

What criterion is used to establish the best "fit" of a straight line through the points on a scatter diagram?

• A)the plum line criterion
• B)the least squares criterion
• C)the bearing line criterion
• D)the b slope criterion
• E)the right angle criterion

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices over a given period of time.

Income Elasticity

A measurement of how the demand for a good or service changes in response to changes in consumers' income levels.

Recession

A period of economic decline across an economy lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Demand

Refers to the desire and willingness of consumers to purchase goods and services at different prices.