If Stepwise Procedure Is Used, a Variable Selected at an Earlier

question 54

True/False

If stepwise procedure is used, a variable selected at an earlier step can be removed from the model if, in the presence of other variables, it no longer contributes significantly to explaining the variation in the dependent variable y.

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Definitions:

Initial Cost

Initial cost refers to the total amount of expenses incurred when acquiring a new asset or starting a new project, including purchase price and any additional costs necessary to get the asset into use.

Equipment

Physical assets used in the operation of a business, particularly in the production, maintenance, or logistics processes.

Profitability Index

A financial metric used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.

Present Value

A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.