Consider the Following Simple Linear Regression Model: Y = β₀

question 96

Multiple Choice

Consider the following simple linear regression model: y = β₀ + β₁x + ε. The random error term is ________.

• A) y
• B) x
• C) ε
• D) β₀

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Definitions:

Consumer Credit-Card Rate

The interest rate that banks charge consumers on the balances they carry on their credit cards.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Economic Resource

Any resource used by humans to produce goods or services, including labor, capital, land, and entrepreneurship.