In a Forward Selection Stepwise Regression Process, the First Variable

question 132

True/False

In a forward selection stepwise regression process, the first variable to be selected will be the variable that can, by itself, do the most to explain the variation in the dependent variable. This will be the variable that provided the highest possible R-square value by itself.

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Loans

A sum of money that is borrowed, which is expected to be paid back with interest.

Bureau of Labor Statistics

A U.S. government agency that collects, processes, and disseminates essential statistical data related to labor market activity, working conditions, and price changes.

Cyclical Unemployment

The deviation of unemployment from its natural rate.

Natural Rate

The rate of any economic activity that is considered to be sustainable in the long term without causing inflation; often used in the context of unemployment.