Refer to the Information Provided in Table 21

question 72

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. Which of the following points is (are) the worst fit for the given consumption function?

• A) A and D
• B) B and F
• C) C
• D) E

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Definitions:

Interaction Term

In statistics, an interaction term is used in models to determine if the effect of two or more variables on a response variable is not additive, indicating that the variables interact in how they influence the response.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.

Regression Equation

A formula that expresses the linear relationship between independent and dependent variables.

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of squares of the distances of observed values from the predicted values.