If the Correlation Between the Two Independent Variables of a Regression

question 55

Multiple Choice

If the correlation between the two independent variables of a regression analysis is 0.11 and each independent variable is highly correlated to the dependent variable,what does this indicate?

• A)Only one of the independent variables should be used in the regression equation.
• B)The independent variables are strongly related.
• C)Two separate regression equations are required.
• D)Both independent variables should be used to predict the dependent variable.

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Definitions:

Indirect Method

A method used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash provided by operating activities.

Direct Method

A cash flow statement preparation approach that shows the specific sources of operating cash receipts and payments.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit which are payable within a year.

Merchandise Suppliers

Companies or individuals that provide products for sale to retailers, often involving wholesale transactions.