Backward Elimination Is the Reverse of the Forward Stepwise Selection

question 23

True/False

Backward elimination is the reverse of the forward stepwise selection procedure. The resulting model can be different than the forward model.

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Definitions:

Transactional Motive

The transactional motive is the need to hold cash for the purpose of conducting day-to-day business operations, such as paying wages and suppliers.

Zero Balance Account

A zero balance account is a type of bank account that maintains a balance of zero dollars by automatically transferring funds from a master account in the exact amount of transactions clearing the account.

Line of Credit

A flexible loan from a bank or financial institution, where a borrower can access funds up to a specified limit at any time.