When You Find "Mixed" Results in Multiple Regression (I

question 12

Multiple Choice

When you find "mixed" results in multiple regression (i.e., some betas are significant, others are not) , you:

• A) eliminate, or "trim," the insignificant variables.
• B) adjust the insignificant variables by applying a standardized weight.
• C) accept the null hypothesis.
• D) choose the result that fits your hypothesis.
• E) add other variables and run the test again.

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Definitions:

Alpha (α)

A threshold value in hypothesis testing used to determine whether to reject the null hypothesis, typically set at 0.05 or 0.01.

Population Mean

The average value of a population set, where the population includes all members of the set.

Fixed

A term often used in finance and economics to denote something that is constant or unchanging over a period.

Unknown

In research and statistics, it refers to a quantity or a property which needs to be discovered or measured.