Which of the Following Responses Is Not True of Logistic

question 6

Multiple Choice

Which of the following responses is not true of logistic regression?

• A) It is basically an extension of multiple regression in situations where the DV is not a continuous or quantitative variable.
• B) Like both multiple regression and discriminant analysis, logistic regression requires the same assumptions about the distributions of the predictor variables (IVs) to be made by the researcher.
• C) This procedure is also sometimes used as an alternative to discriminant analysis.
• D) The basic concepts that are fundamental to multiple regression analysis-namely that several variables are regressed onto another variable using one of several selection processes-are the same for logistic regression analysis, although the meaning of the resultant regression equation is considerably different.

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Definitions:

Implicit Cost

Costs that represent the loss of potential gain from using assets in an alternative option rather than in their current use.

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from gross revenue, according to accepted accounting principles.