The "Best-Fitting" Straight Line Which Describes the Data Points in a Scatterplot

question 11

Multiple Choice

The "best-fitting" straight line which describes the data points in a scatterplot is the line that

• A) goes through the greatest number of points
• B) has the smallest y-intercept
• C) has the steepest slope
• D) minimizes the sum of the squared vertical distances of points from the line

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial statement.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting its loss of value over time.

Equipment

Tangible assets used in the operation of a business, such as machinery, computers, and tools.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset from the time it was put into service until a particular date.