Linear Regression Is Important Because

question 22

Multiple Choice

Linear regression is important because

• A)it is used to predict unknown Y scores based on X scores from a correlated variable.
• B)it is used to predict unknown Y scores based on X scores,even if the X variable is not correlated with the Y variable.
• C)it is a statistic that summarizes the relationship between the X and Y variables.
• D)it indicates how close our predictions of Y values are to the actual Y values.

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Definitions:

Zero Marginal Cost

The situation where producing an additional unit of a good or service does not increase the total cost of production.

Fixed Cost

Expenses that do not change with the level of output produced, such as rent, salaries, and insurance premiums.

Patent

A legal grant by a government to an inventor, giving the right to exclude others from making, using, or selling an invention for a certain number of years.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity volume.