The assumptions underlying the simple linear regression model are:
a. the value of the dependent variable Y is postulated to be a random variable
b. a theoretical straight-line relationship exists between X and the expected value of Y
c. associated with each value of X is a probability distribution
d. the disturbance term is assumed to be an independent random variable
e. a through c
f. b through d
e
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Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except
A) an increase in the number of manufacturers of electric cars. B) technological advancement in the production of electric car batteries. C) a decrease in the price of lithium, which is used in the electric car batteries. D) an increase in the price of gasoline.
To maintain a price above the equilibrium price,
a. demand must increase. b. supply must increase. c. price must be regulated. d. demand must decrease.
Suppose the labor supply equation is L = (W/3) - (4/3). The wage rate is initially 5. What is the amount of producer surplus here?
What will be an ideal response?
Scarcity means
a. unlimited wants and unlimited available resources. b. unlimited wants and limited available resources. c. limited wants and limited available resources. d. limited wants and unlimited available resources.