I in Order to Visualize the Form of the Regression

question 45

Multiple Choice

i. In order to visualize the form of the regression equation, we can draw a scatter diagram. ii. The least squares technique minimizes the sum of the squares of the vertical distances between the actual Y values and the predicted values of Y.
iii. In regression analysis, the predicted value of Y' rarely agrees exactly with the actual Y value, i.e., we expect some prediction error.

• 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:

Short-Run Supply

The supply of goods or services that can be adjusted in a relatively short period to meet changes in demand.

Long-Run Supply

The total quantity of goods or services that producers are willing and able to supply over a long period, considering all inputs and production costs are variable.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing and able to sell, holding other factors constant.