Which of the Following Is True of the Fundamentals of Regression

question 16

Multiple Choice

Which of the following is true of the fundamentals of regression analysis?

• A) A fundamental basis of regression analysis is the assumption of a circular relationship between the independent and dependent variables.
• B) Regression uses an estimation procedure called ordinary least squares that guarantees the line it estimates will be the best fitting line.
• C) The differences between actual and predicted values of the dependent variable are known as regression coefficients and are represented by b.
• D) The regression coefficient is calculated by squaring errors of each dependent variable.
• E) Any point that falls on the line of a regression analysis is the result of unexplained variance.

Understand the concept and causes of inflation and deflation.

Identify the phases of the business cycle, including peak, trough, recovery, and recession.

Distinguish between different types of unemployment (frictional, structural, cyclical).

Learn how the Consumer Price Index (CPI) is calculated and its importance in measuring inflation.

---

Definitions:

Behavioral Economists

Researchers who study the psychological, social, cognitive, and emotional factors influencing the economic decisions of individuals and institutions.

Ultimatum Game

A game in experimental economics in which two players interact to decide how to divide a sum of money that is given by the experimenter.

Dictator Game

An economic experiment where one player (the 'dictator') determines the division of a sum of money between themselves and another player.

Behavioral Economists

Economists who study how psychological, cognitive, emotional, cultural and social factors affect economic decisions of individuals and institutions.