Which of the Following Statements Is True When the Dependent

question 9

Multiple Choice

Which of the following statements is true when the dependent variable, y > 0?

• A)Taking log of a variable often expands its range.
• B)Models using log(y) as the dependent variable will satisfy CLM assumptions more closely than models using the level of y.
• C)Taking log of variables make OLS estimates more sensitive to extreme values.
• D)Taking logarithmic form of variables make the slope coefficients more responsive to rescaling.

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Definitions:

Check Register

A record book or ledger that tracks all checks written, deposits made, and current balance of a checking account, aiding in personal financial management.

Bank Statement

A document provided by a bank that summarizes an account's transactions and balances over a specified period.

Outstanding Checks

Checks that have been written and recorded in accounting but not yet cleared or cashed by the bank.

Service Charge

An additional fee added to a customer's bill for the provision of certain services.