Which of the Following Is NOT a Good Reason for Including

question 7

Multiple Choice

Which of the following is NOT a good reason for including lagged variables in a regression?

• A) Slow response of the dependent variable to changes in the independent variables
• B) Over-reactions of the dependent variables
• C) The dependent variable is a centred moving average of the past 4 values of the series
• D) The residuals of the model appear to be non-normal

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Definitions:

Fraud

A deliberate deception practiced to secure unfair or unlawful gain.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Reliance

The act of depending or trusting in something or someone; in legal contexts, often refers to actions taken based on assurances or promises from others.

Invasion Of Privacy

The intrusion into the personal life of another person without just cause.