i. 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.
ii. When a regression line has a zero slope, indicating a lack of a relationship, the line is vertical to the x-axis.
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) All statements are false

Question

i. 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. 
ii. When a regression line has a zero slope, indicating a lack of a relationship, the line is vertical to the x-axis.
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) All statements are false

Quizplus · Accepted Answer

Statement (i) is correct as the least squares technique minimizes the sum of the squares of the vertical distances. Statement (ii) is incorrect because a zero slope indicates a horizontal line, not vertical. Statement (iii) is correct as prediction errors are common in regression analysis.

I the Least Squares Technique Minimizes the Sum of the Squares