When Using the T-Statistic in Multiple Regression to Determine If

question 43

Multiple Choice

When using the t-statistic in multiple regression to determine if a variable should be removed:

• A) R² will increase if the variable is removed.
• B) if |t| > 1, the standard error will decrease.
• C) a large number of independent variables is convenient.
• D) if |t| < 1, the standard error will increase.

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Definitions:

Understocking

A situation where inventory levels are too low, leading to potential lost sales and dissatisfaction among customers.

Customer Service Level

A measure of the quality of service provided to customers, often reflecting the ability to meet customer needs and resolve issues.

Stockout

A situation that occurs when an item is not in stock and unavailable for sale or use, often leading to lost sales or customer dissatisfaction.

Lost Sale

A potential sale that is not realized, often due to stockouts or inability to meet customer demand.