The Difference Between the Observed Value of the Dependent Variable

question 21

Multiple Choice

The difference between the observed value of the dependent variable and the value predicted using the estimated regression equation is known as the

• A)constant term.
• B)error term.
• C)residual.
• D)model parameter.

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Definitions:

Invisible Hand

A term coined by economist Adam Smith to describe the unintended social benefits resulting from individual actions when they pursue their own interests in a free market.

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Society's Interests

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