Which of the Following Is True of the Error Term

question 32

Multiple Choice

Which of the following is true of the error term used in linear regression?

• A)It represents the joint influence of all the dependent variables in the regression model.
• B)It represents the joint influence of factors,other than the dependent and independent variables,on the regression model.
• C)It represents the joint influence of all the independent variables in the regression model.
• D)It represents the combined effect of the dependent,independent,and non-represented factors on the regression model.

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Definitions:

Demand

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

Perfectly Inelastic

Refers to a scenario in which the amount demanded or supplied shows no reaction whatsoever to changes in price.

Total Revenue

The total amount of money earned by a business from the sale of its goods and services.

Price-elastic

Refers to the responsiveness of demand or supply to changes in price, with high elasticity indicating significant response to price changes.