Prior to Running a Regression Analysis, What Is the First

question 2

Multiple Choice

Prior to running a regression analysis, what is the first procedure that should be completed?

• A) Visually inspect the data using a scatterplot.
• B) Run a correlation analysis on the data.
• C) Check the residuals.
• D) Plot a histogram for each variable to determine its distribution.

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Definitions:

Cash Operating Costs

Expenses a company incurs during its day-to-day operational activities that require cash payment.

Automating

The process of using technology to perform tasks without human intervention, often resulting in increased efficiency and reduced error.

Payback Period

The time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.