Use of Simple Linear Regression Analysis Assumes That

question 16

Multiple Choice

Use of simple linear regression analysis assumes that :
I.Variations around the line are random.
II.Deviations around the line are normally distributed.
III.Predictions are to be made only within the range of observed values of the predictor variable.

• A) I only
• B) II only
• C) III only
• D) II and II only
• E) I, II, and III

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Definitions:

Producers Worse Off

A situation where producers face decreased profitability or increased costs due to economic changes.

Consumers Better Off

A situation where individuals experience an improvement in their welfare or satisfaction, often through lower prices or higher quality goods and services.

Domestic Price

The price of a good or service within a country’s borders, which can differ from its price in the international market due to tariffs, taxes, and supply and demand conditions.

World Price

The global market price at which goods and services are bought and sold, influencing international trade dynamics.