(Requires Appendix Material)The Sample Average of the OLS Residuals Is

question 41

Multiple Choice

(Requires Appendix material) The sample average of the OLS residuals is

• A)some positive number since OLS uses squares.
• B)zero.
• C)unobservable since the population regression function is unknown.
• D)dependent on whether the explanatory variable is mostly positive or negative.

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Definitions:

Stepwise Regression

An approach to constructing regression models where the selection of predictor variables is performed automatically.

Dependent Variable

A variable in an experiment or model that is expected to change in response to manipulations of independent variables.

Building Model

The process of creating a mathematical, statistical, or computational representation of a real-world scenario for the purpose of analysis or prediction.

Logistic Regression

A statistical method used for predicting a binary outcome from a set of independent variables.