The Statistical Model for Simple Linear Regression Has the Form

question 27

Multiple Choice

The statistical model for simple linear regression has the form ,i = 1,2,…,n.Which of the following statements about this statistical model is/are TRUE?

• A)The are assumed to be Normally distributed with a mean of 0 and a standard deviation of  .
• B)The parameters of this model are , ,and  .
• C) is the mean response when .
• D)The ,i = 1,2,…,n are independent.
• E)All of the above are true.

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Definitions:

Profit

The financial gain obtained when the total revenues generated exceed the total costs incurred by a business.

Marginal Cost

The growth in total expenses incurred from the production of one more unit.

Output

The total amount of goods or services produced by a firm or country.

Demand

How much of a good or service that consumers can and want to buy, influenced by differing price levels.