A Multiple Regression Analysis Showed the Following Results of the Individual

question 75

Multiple Choice

A multiple regression analysis showed the following results of the individual independent variables. Which independent variables are significantly related to the dependent variable?

• A) X2 and X4 are significantly related to the dependent variable indicated by their very small p-values.
• B) No significant relationship between the independent variables and the dependent variable.
• C) All 4 independent variables are highly correlated with each other, therefore they are all significantly related to the dependent variable.
• D) X1 and X3 are significantly related to the dependent variable indicated by their large p- values.

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Definitions:

Nominal Interest Rate

The nominal interest rate, which reflects the raw rate of interest prior to being adjusted for inflation and represents the apparent value of financial dealings.

Market Basket

A selection of goods and services used to track price changes and inflation in an economy, representing the typical purchases made by consumers.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Market Basket

A selected set of goods and services used to track inflation and the cost of living or to define a beneficiary's set of consumable products.