What Does the Principle of Parsimony Suggest

question 75

Multiple Choice

What does the principle of parsimony suggest?

• A)A simple model with fewer independent variables may not produce an effective result.
• B)The fewest number of explanatory variables that explain the independent variable need to be included in the model.
• C)Good regression models are often based on sound technical analysis.
• D)To avoid the problem of multicollinearity,the number of independent variables need to be sufficiently high.

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Definitions:

Automobile Accidents

Unplanned, damaging events involving one or more vehicles, often resulting in injury or damage to property.

Linear Relationship

A type of correlation between two variables where any increase or decrease in one variable results in a proportional change in the other.

Correlation Coefficient

An analytical assessment that quantifies the degree and direction of correlation between two distinct variables.

Interval Variables

Variables which not only have an order but also a precise numerical distance between their values, similar to interval data but in a context emphasizing variable types.