THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 72

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Given a simple regression analysis,suppose that we have obtained the fitted regression model:
_i = 6 + 8x_i and also the following statistics: s_e = 3.20,
= 8,n = 42,and
-A scatter diagram includes the data points (x = 2,y = 5),(x = 4,y = 12),(x = 6,y = 20),(x = 8,y = 28),and (x = 10,y = 30).Two regression lines are proposed: (1)
= -0.6 + 3x,and (2)
= -1 + 5x.Using the least squares criterion,which of these regression lines is the better fit to the data? Why?

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Definitions:

Acceptance

Acceptance in business refers to the agreement to the terms of a contract or an acknowledgment that a product or service meets the required standards.

Cash Receipts

Money received by a business during a given period, accounting for its cash inflow.

Cash Payments

Transactions that involve the outflow of cash from a company to settle dues such as expenses, debts, or purchases.

Debit Balance

A situation where the sum of debits in an account exceeds the sum of credits, often indicating the amount owed or expenses.