Least Squares Trend Analysis Involves Fitting a Straight Line Through

question 4

Multiple Choice

Least squares trend analysis involves fitting a straight line through a series of data, which, by definition:

• A)minimizes the distance of each data point from the line, and minimizes the squared area above and below the trendline.
• B)minimizes the distance between each data point.
• C)must include at least one peak and at least one trough.
• D)must include a minimum of 20 points to get a usable trendline.

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Definitions:

Producers' Income

The earnings or revenue received by the producers or firms from the sale of goods or services before the deduction of any expenses.

Surplus

An excess amount of a commodity or service, exceeding what is normally utilized or required.

Government

The governing body of a nation, state, or community responsible for leadership, policy making, and administration.

Ethanol Program

A governmental policy initiative aimed at promoting the use of ethanol as a biofuel, to reduce dependency on fossil fuels and decrease greenhouse gas emissions.