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Alg w Finance 2.2
| Term | Definition |
|---|---|
| Line of best fit | A line that approximates the points on a scatter plot which can be used to show a trend and make predictions |
| linear regression line | A line that approximates the points on a scatter plot which can be used to show a trend and make predictions |
| least square line | A line that approximates the points on a scatter plot which can be used to show a trend and make predictions |
| domain | the first elements of the ordered pair ( x- value) |
| range | The second elements of the ordered pair ( y- value) |
| interpolation | to predict corresponding y values given a x value within the domain |
| extrapolation | to predict corresponding values outside of the domain |
| correlation coeffecient | r, is a number between -1 and 1 inclusive that is used to judge how closely a line fits the data. |
| strong correlation | correlation coefficients with an absolute value greater than 0.75 |
| weak correlation | correlation coefficients with an absolute value less than 0.3 |
| moderate correlation | correlation that is not strong or weak. |