In a Situation Where the Dependent Variable Can Assume Only

question 54

Multiple Choice

In a situation where the dependent variable can assume only one of the two possible discrete values,

• A) we must use multiple regression.
• B) there can only be two independent variables.
• C) logistic regression should be applied.
• D) all the independent variables must have values of either zero or one.

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Definitions:

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, showing how much each unit contributes to covering fixed costs and earning profit.

Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of interest and taxes.