Given a Model Where the Variables Are on a Different

question 17

Multiple Choice

Given a model where the variables are on a different scale, in order to make them comparable we need to:

• A) Standardize the model by dividing the difference of the variable from its average by its standard deviation.
• B) Don't need to do anything and can run the model in its unaltered form.
• C) Standardize the model by taking the log/ln of each variable.
• D) Standardize the model by dividing the coefficient of each variable by its standard deviation.

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Definitions:

Taxed

Subjected to a financial charge or levy by a governmental organization in order to fund various public expenditures.

S Corporation

A close corporation whose shareholders have elected to be taxed essentially like partners are taxed under federal income tax law. Also called subchapter S corporation.

Limited Partnership

A partnership structure where at least one partner has unlimited liability, and at least one partner has limited liability.

Personal Liability

The responsibility of an individual to bear the financial costs associated with damages or debt from their actions or business dealings.