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The business boom of the 1920s made people overly confident thus; they invested their money in risky stocks and deals. In addition, banks made careless loans and soon failed when people could not pay them back. Third, businesses formed more goods than were wanted and they could not sell or make a profit. Lastly, human workers / jobs were becoming changed by machines and people could not find work.
In the figure above the vertical deviations of the individual points from the line are shown as the short vertical lines joining the points to the least squares line. These
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