If All the Plots on a Scatter Diagram Lie on a Straight

question 16

Multiple Choice

If all the plots on a scatter diagram lie on a straight line,what is the standard error of estimate?

• A)−1
• B)+1
• C)0
• D)Infinity

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Definitions:

Investment

The allocation of resources, typically money, with the expectation of generating an income or profit.

Standard Deviation

A measure of the dispersion or volatility of asset returns, indicating the degree to which the returns vary from the average.

Population

The entire aggregation of items from which samples can be drawn for statistical measurement or inference.

Normal Distribution

A statistical distribution that is uniform around the average, indicating that observations close to the mean are more common than observations distant from the mean.