In Regression,the Line That Runs Through the Points on a Scatter

question 29

True/False

In regression,the line that runs through the points on a scatter diagram is positioned to minimize the vertical distances away from the line of the various points because of the least squares criterion.

---

Definitions:

Gain

An increase in equity resulting from the sale of an asset for more than its purchase price or carrying value, not related to the company's primary operations.

Accounts Receivable

Represents money owed to a company by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Operating Activities

Business actions directly related to the production, sales, and delivery of a company's goods or services, reflected in its cash flow.

Income Statement

A financial statement that reports a company's revenues and expenses over a specific period, ending with the net earnings or losses.