A Regression Analysis Is Not Suitable When

question 16

Multiple Choice

A regression analysis is not suitable when?

• A)Two variables have been measured on a ratio scale.
• B)There is a high error ratio.
• C)There is heteroscedasticity in the scatter plot.
• D)The data plot is a diagonal through the origin.

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Definitions:

Representativeness Heuristic

A mental shortcut that involves making a probability judgment by comparing an object or event to a prototype of the object or event.

Availability Heuristic

A cognitive bias that causes people to overestimate the importance of information that is readily available to them.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "I-knew-it-all-along" effect.

Confirmation Bias

The tendency to favor, interpret, and recall information in a way that confirms one's preexisting beliefs or hypotheses.