Loglinear Analysis Is a Better Statistical Test Than ANOVA When

question 3

Multiple Choice

Loglinear analysis is a better statistical test than ANOVA when predicting a nominal dependent variable because

• A) p-values are always lower in ANOVA.
• B) ANOVA should only be used when the dependent variable has an approximately normal distribution.
• C) loglinear analysis is easier to compute.
• D) loglinear analysis creates more Type 2 errors.

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Definitions:

Discretionary Policies

Economic strategies, involving government spending and taxation, that are implemented at the discretion of the government to manage economic fluctuations.

Monetarist Economists

Economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Phillips Curve

Curve showing inverse relationship between the unemployment rate and the rate of inflation.

Laffer Curve

Shows that at very high tax rates, very few people will work and pay taxes; therefore government revenue will rise as tax rates are lowered.