-Refer to Figure 7

question 20

Multiple Choice

-Refer to Figure 7.6.Which graph represents decreasing returns to scale?

• A) A
• B) B
• C) C
• D) Both graph A and graph C

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Definitions:

Coefficient of Determination

A statistical measure represented as r^2 that shows the proportion of variance in the dependent variable that is predictable from the independent variable(s).

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating given constraints.

Regression Model

A mathematical representation of the relationship between a dependent variable and one or more independent variables.

Independent Variable

A variable that is manipulated or categorized to observe its effect on a dependent variable, without being affected by other variables in the experiment.