What Does a Zero Regression Residual Mean

question 14

Multiple Choice

What does a zero regression residual mean?

• A) The two variables have a negative correlation.
• B) That case's actual value on the dependent variable is exactly what was predicted by the regression equation.
• C) That case's actual value on the dependent variable is more than what was predicted by the regression equation.
• D) The slope of the best-fitting straight line is negative.

---

Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, a key concept used in decision-making and pricing strategies.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not reduce availability to others.

Grocery Store

A retail store that sells food and other household goods.

Marginal Social Benefit

The additional benefit to society as a whole from one more unit of a good or service being consumed.