I the Technique Used to Measure the Strength of the Relationship

question 57

Multiple Choice

i. The technique used to measure the strength of the relationship between two sets of variables using the coefficient of correlation and the coefficient of determination is called regression analysis. ii. In order to visualize the form of the regression equation, we can draw a scatter diagram.
iii. When a regression line has a zero slope, indicating a lack of a relationship, the line is horizontal to the x-axis.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Market Price

Today's rate at which one can sell or buy a service or asset.

Not Binding

A term used to describe a situation where a constraint or limit (such as a price ceiling or floor) does not affect the equilibrium outcome of the market.

Equilibrium Price

The market price where the quantity of goods supplied equals the quantity of goods demanded.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and able to buy at a specific price.