STATISTICAL TECHNIQUES AND TOOLS
CORRELATION COEFFICIENT COEFFICIENT OF DETERMINATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
To make predictions
|
|
|
To make the graph look pretty
|
|
|
To connect the points
|
|
|
To make it look like you know what you are doing
|
Detailed explanation-1: -A line of best fit is a straight line that minimizes the distance between it and some data. The line of best fit is used to express a relationship in a scatter plot of different data points. It is an output of regression analysis and can be used as a prediction tool for indicators and price movements.
Detailed explanation-2: -A line of best fit, also called a trend line or linear regression, is a straight line drawn on a graph that best represents the data on a plot. This line passes through some of the points, all of the points, or none of the points. It can be used to make predictions or to show trends in data.
Detailed explanation-3: -A line of best fit is a straight line drawn through the maximum number of points on a scatter plot balancing about an equal number of points above and below the line. It is used to study the nature of relation between two variables.