The Least Squares Regression Line Minimizes the Sum of the

question 103

Multiple Choice

The least squares regression line minimizes the sum of the

• A) differences between actual and predicted Y values.
• B) absolute deviations between actual and predicted Y values.
• C) absolute deviations between actual and predicted X values.
• D) squared differences between actual and predicted Y values.
• E) squared differences between actual and predicted X values.

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Definitions:

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company, including materials and labor.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or expected cost of labor, often analyzed in cost accounting.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labor cost per hour.

Direct Labor

Labor costs that can be directly traced to the production of specific goods or services.