In the Simple Linear Regression Analysis Equation, Y = a

question 57

Multiple Choice

In the simple linear regression analysis equation, Y = a + bx, b represents

• A) the slope of the line.
• B) expected sales.
• C) the constant.
• D) the factor on which sales are dependent.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of individuals increases, opposite to normal goods.

Normal Good

A good for which demand increases when income increases, and falls when income decreases but price remains constant, showing a direct relationship between income and demand.

Income Elasticity

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

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.