What Do We Mean When We Say That a Simple

question 184

Multiple Choice

What do we mean when we say that a simple linear regression model is "statistically" useful?

• A)All the statistics computed from the sample make sense.
• B)The model is an excellent predictor of Y.
• C)The model is "practically" useful for predicting Y.
• D)The model is a better predictor of Y than the sample mean, .

---

Definitions:

Economic Actors

Individuals, households, businesses, and governments that make decisions about the allocation of resources and engage in the production, distribution, and consumption of goods and services.

Psychology of Human Behavior

The study of individuals' thoughts, feelings, and behaviors and how they are influenced by physical, mental, social, and environmental factors.

Economics

The social science that studies the production, distribution, and consumption of goods and services, and how individuals, businesses, and governments make decisions on allocating resources.

Economic Issues

Problems or challenges facing an economy, ranging from unemployment to inflation, affecting the well-being of its citizens.