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:

Consumer Surplus

The difference in the total amount expected to be paid by consumers for a good or service and the actual payment made.

Willingness to Pay

Willingness to Pay is the maximum amount an individual or organization is ready to spend to procure a product or service, reflecting the value they attach to it.

Market Failure

A scenario in which the distribution of goods and services through a free market fails to be efficient, typically resulting in a decrease in overall social welfare.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing their gain.