If an Analyst Believes That More Than One Explanatory Variable

question 17

Multiple Choice

If an analyst believes that more than one explanatory variable explains the variation in the dependent variable,what model should be used?

• A)a simple linear regression model
• B)a multiple regression model
• C)a nonlinear regression model
• D)a log-linear model

---

Definitions:

Risk Averter

A risk averter is someone who prefers to avoid uncertainty and potential losses, choosing options that offer more security even if they might offer lower potential returns.

Mean

The average of a set of numbers, calculated by dividing the sum of these numbers by the count of the numbers in the set.

Risk-Free Asset

An investment with a guaranteed return and no risk of financial loss.

Expected Rate

The anticipated yield or return on an investment, loan, or other financial products over a specific period.