Which of the Following Is the Difference Between Forward Selection

question 40

Multiple Choice

Which of the following is the difference between forward selection and standard stepwise regression?

• A) In the standard stepwise regression, variables that were added at earlier steps can be removed at later steps, which is not the case with forward selection.
• B) The standard stepwise approach will generally produce a regression model with a higher R-square value than the forward selection approach.
• C) Forward selection begins by selecting the variable with the highest correlation with the dependent variable and then proceeds to select subsequent variables in order of their F-to-enter value, while
• Standard stepwise selects the variables in the order specified by the decision maker and then removes
• Them from the model as needed.
• D) There are no appreciable differences between the two methods, just different names for the same technique.

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Definitions:

Adjusted Cost of Goods Sold

The cost of goods sold figure that has been adjusted for any changes in inventory levels, ensuring it reflects the cost of goods actually sold during the period.

Underapplied Manufacturing Overhead

An occurrence where the overhead expenses budgeted for manufacturing fall short of the overhead costs that were truly incurred.

Allocation

The process of assigning indirect costs to specific cost objects, such as products or departments.

Journal Entry

A record in accounting that logs a transaction and shows the affected accounts in debit and credit form.