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How the utility maximised?
In basic economic theory, an agent's utility is maximized by finding the point on the agent's budget line that gives the highest utility. This is done by taking the first order derivative of both the budget line and the utility function and finding at what point they are equal. This is the consumption bundle.
What is a budget line and how is it useful in reaching consumer equilibrium?
it is a line showing all possible combinations of two goods(goods-1 and good-2) which a consumer can buy with his given money income and the price of the goods prevailing in the market.anywhere on the budget line the consumer spends his entire income on either good1 or good2 or both the goods. each point on the budget line indicates the different combinations of good1 and good2 which a consumer can buy with his income. in indifference curve analysis consumer attains his equilibrium when the slope of price line/budget line is equal to the slope of indifference curve.equilibrium is attained at that point where ic curve is tangent to the price line.....
What is the relationship between indifference curve and budget constraint?
The tangency point of Indifference curve and budget line shows the Marginal Rate of Substitution between X and Y commodities. Consumer's equilibrium is achieved at that point.
What is multiple regression?
Statistical analysis that describes the changes in a dependent variable, such as sunglass sales volumes, associated with changes in one or more independent variables, such as the average age of the residents of a market area. For example, a multiple-regression analysis might reveal a positive relationship between demand for sunglasses and various demographic characteristics (age, income) of the buyers-that is, demand varies directly with changes in their characteristics. Multiple regression thereby helps marketers to identify their best prospects.For the source and more detailed information concerning this subject, click on the related links section (Answers.com) indicated below.
In context to the production possibilities curve what is the largest reason for unemployment?
Operating at an inefficient point, i.e. inside the PPF and not on the edge or line of the PPF
Given a linear regression equation of equals 20 - 1.5x where will the point 3 15.5 fall with respect to the regression line?
on the lineGiven a linear regression equation of = 20 - 1.5x, where will the point (3, 15) fall with respect to the regression line?Below the line
What does it mean to say that a data point has a residual of -1?
The point lies 1 unit below the regression line.
What you mean by residual value?
The point lies one unit above the regression line.
What does it mean to say that data point has a residual of one?
The point lies 1 unit below the regression line.
What is regression coefficient and correlation coefficient?
The strength of the linear relationship between the two variables in the regression equation is the correlation coefficient, r, and is always a value between -1 and 1, inclusive. The regression coefficient is the slope of the line of the regression equation.
What does it mean to say that a data point has a residual of negative one?
The point lies one unit below the regression line.
Why are there two regression lines?
There are two regression lines if there are two variables - one line for the regression of the first variable on the second and another line for the regression of the second variable on the first. If there are n variables you can have n*(n-1) regression lines. With the least squares method, the first of two line focuses on the vertical distance between the points and the regression line whereas the second focuses on the horizontal distances.
What does it mean to say that a data point has a residual of zero?
If a data point has a residual of zero, it means that the observed value of the data point matches the value predicted by the regression model. In other words, there is no difference between the actual value and the predicted value for that data point.
Do a line and point intersect?
Not always. Only if the point is on the line. it
How do you solve regression line?
by regrsioning it.
Is the line of best fit the same as linear regression?
Linear Regression is a method to generate a "Line of Best fit" yes you can use it, but it depends on the data as to accuracy, standard deviation, etc. there are other types of regression like polynomial regression.
What is intercept term?
For a line graph, its equation is:y = mx + cwhere 'm' is the gradient of the line and 'c' is the intercept - which gives the value of y when x = 0.In linear regression, the line of best fit (y = α + βx where α is the intercept-term) is found so that the distance of each point from this line is a minimum. Sometimes people will go for a simpler regression line which does not have the intercept-term, ie the line passes through the point (0, 0).
