Regression analysis is a key method used in econometrics in which the coefficients of an equation are calculated by finding values for them that make the_______ as small as possible.
A)correlation
B)standard error
C)sum of the squared error terms
D)confidence interval

Question

Quizplus · Accepted Answer

Regression analysis involves finding the line of best fit between two variables by minimizing the sum of the squared error terms (also known as the residual sum of squares). The other options, correlation, standard error, and confidence interval, may be related to regression analysis but do not directly involve calculating the coefficients of a regression equation.

Regression Analysis Is a Key Method Used in Econometrics in Which