The Least-Squares Regression Line Minimizes the Sum Of

question 104

Multiple Choice

The least-squares regression line minimizes the sum of:

• A) the squares of the shortest distance from each scatterplot point to the regression line.
• B) the squares of the vertical distance from each scatterplot point to the regression line.
• C) the squares of the horizontal distance from each scatterplot point to the regression line.
• D) None of the above.

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Definitions:

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund various public expenditures.

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.

Marginal Social Cost

An increased charge to the general public for the creation of one more unit of a product or service.

Pollution

The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.