If Our Regression Equation Is Y = X $\beta$ + U, Where We Have T Observations and K Regressors

question 3

Multiple Choice

If our regression equation is y = X $\beta$ + u, where we have T observations and k regressors, what will be the dimension of using the standard matrix notation

• A) T * k
• B) T * 1
• C) k *1
• D) k * k

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Definitions:

Stepwise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure, entering and removing predictors based on specific criteria.

Independent Variable

A variable in an experiment or statistical model whose variation influences another variable's (dependent variable) outcomes.

Sample Regression Equation

A formula that estimates the relationship between a dependent variable and one or more independent variables, based on sample data.

Intercept

The value of the dependent variable when all independent variables are equal to zero in a regression equation.