When Determining Whether to Include or Exclude a Variable in Regression

question 6

Multiple Choice

When determining whether to include or exclude a variable in regression analysis,if the p-value associated with the variable's t-value is above some accepted significance value,such as 0.05,then the variable

• A)is a candidate for inclusion.
• B)is a candidate for exclusion.
• C)is redundant.
• D)does not fit the guidelines of parsimony.

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Definitions:

Content Validity

The extent to which a test or questionnaire accurately covers or represents the specific content it aims to measure.

Construct Validity

The extent to which a test or instrument measures the theoretical construct it is intended to measure.

Criterion-related Validity

A measure of how well one variable or test predicts an outcome based on information from other variables.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement.