In a Multiple Regression Analysis, the Following Correlation Matrix Was

question 17

Multiple Choice

In a multiple regression analysis, the following correlation matrix was computed. Which independent variable(s) are highly correlated with the dependent variable?

• A) X1
• B) X2
• C) X3
• D) X1 and X4
• E) X2 and X4

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Definitions:

Monte Carlo Sampling

A statistical technique that utilizes random sampling and probability to solve problems that might be deterministic in principle.

Latin Hypercube Sampling

A statistical method used in simulations that stratifies the sample space to ensure a more comprehensive exploration of variables across their entire range of values.

Assumption's Probability Distribution

The theoretical distribution of probabilities assigned to all possible values of a variable based on certain assumptions.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.