Because there will always be some random factors the affect demand that cannot be captured, a is ________added to the regression equation.
A)dependent variable
B)horizontal intercept
C)random error term
D)slope coefficient

Question

Quizplus · Accepted Answer

Random factors that affect demand but cannot be captured are included in the regression equation as a random error term. This term accounts for the variability in the dependent variable that is not explained by the independent variables included in the regression model. Therefore, the correct choice is C - random error term.

Because There Will Always Be Some Random Factors the Affect