In Regression Analysis, If the Dependent Variable Is Measured in Dollars

question 4

Multiple Choice

In regression analysis, if the dependent variable is measured in dollars, the independent variable _____.

• A) must also be in dollars
• B) must be in some unit of currency
• C) can be any units
• D) cannot be in dollars

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Definitions:

Test Statistic

A statistic calculated from sample data, used to decide whether to reject the null hypothesis in hypothesis testing.

Within-treatments Variation

The variability among experimental units that are exposed to the same level of treatment in an experiment.

Sum Squares Treatments (SST)

A measure used in statistics, especially in analysis of variance (ANOVA), to quantify the variability among group means in an experiment.

Sum Squares Error (SSE)

A measure of the discrepancy between the data and an estimation model, calculated as the sum of the squared differences between each observation and its group's mean.