Indicate in a Scatterplot What the Data for Your Dependent

question 6

Essay

Indicate in a scatterplot what the data for your dependent variable and your explanatory variable would look like in a regression with an R2 equal to zero.How would this change if the regression R2 was equal to one?

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market price, achieving market balance.

Output

The cumulative quantity of products or services generated by a company, sector, or economic system within a specific timeframe.

Market

A medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.

No Externality

A situation where private costs or benefits are equal to social costs or benefits, with no spillover effects on third parties.