Refer to the Information Provided in Table 21

question 51

Multiple Choice

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The SUM that is calculated from all the error points from the table is equal to

• A) -5.
• B) +13.
• C) +25.
• D) +31.

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Definitions:

Regression Inference

The process of using regression analysis to make predictions or draw conclusions about the relationship between variables.

Linear Correlation

A relationship between two variables where a change in one variable is associated with a proportional change in the other.

Residual Plot

A graph showing the residuals on the vertical axis and the independent variable on the horizontal axis, used to assess the fit of a model.

Regression Inferences

The process of drawing conclusions about population parameters based on a regression model fitted to a sample of data.