Author Question: When using regression analysis for forecasting, the confidence interval indicates A) the degree ... (Read 62 times)

Alygatorr01285 · **on:** Jul 1, 2018

When using regression analysis for forecasting, the confidence interval indicates

A) the degree of confidence that one has in the equation's R2.
B) the range in which the value of the dependent variable is expected to lie with a given degree of probability.
C) the degree of confidence that one has in the regression coefficients.
D) the range in which the actual outcome of a forecast is going to lie.

Question 2

What are the functions for MC and AC if TC = 100q + 100 ? Are the returns to scale increasing, decreasing, or constant?

What will be an ideal response?

sultana.d · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

B

Answer to Question 2

MC = 100 + 200q
AC = 100 + 100q
Since AC increases with an increase in output, there are decreasing returns to scale.