The cost of a product has been increasing each year. The graph shows data about the product's cost over time.
1 answer:
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Answer:
Option a) u is called the "error term". It is the error we make in prediction
Option d) x is called the independent variable because x is independent from y and u.
Step-by-step explanation:
We are given the following information in the question:
where y is the dependent variable, x is the independent variable.
: It is the value of y when x is zero, that is y-intercept.
: It is the coefficient of x in predicting the dependent variable y.
u is the error term.
- An error term represents the margin of error.
- It refers to the sum of the deviations within the regression line, that is the difference between the predicted value and the observed value of y.
Thus, Option A) u is the error term and Option D) x is called the independent variable because x is independent from y and u are the correct answer.