i. In order to visualize the form of the regression equation, we can draw a scatter diagram.
ii. The least squares technique minimizes the sum of the squares of the vertical distances between
The actual Y values and the predicted values of Y.
iii. In regression analysis, the predicted value of Y' rarely agrees exactly with the actual Y value, i.e.,
We expect some prediction error.
A) (i) , (ii) , and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii) .
C) (i) and (iii) are correct statements but not (ii) .
D) (ii) and (iii) are correct statements but not (i) .
E) (i) , (ii) , and (iii) are all false statements.
Correct Answer:
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