The Least Squares Regression Line Minimizes the Sum of The

question 39

Multiple Choice

The least squares regression line minimizes the sum of the:

• A)Differences between actual and predicted Y values.
• B)Absolute deviations between actual and predicted Y values.
• C)Absolute deviations between actual and predicted X values.
• D)Squared differences between actual and predicted Y values.
• E)Squared differences between actual and predicted X values.

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Definitions:

Net Operating Income

A measure of a company's profitability that excludes non-operating income and expenses, such as interest.

Operating Assets

Assets used in the day-to-day operations of a business, contributing to the generation of revenue.

Turnover

A financial metric indicating the rate at which inventory is sold or the rate at which employees leave and are replaced in a business.

Net Operating Income

The profit a company generates from its operations, excluding taxes and interest, calculated as revenues minus expenses.