Multiple Regression Differs from Simple Regression in That

question 26

Multiple Choice

Multiple regression differs from simple regression in that:

• A) there can be multiple dependent variables.
• B) the time periods over which observations are taken are multiplied to increase explanatory power.
• C) a simple regression is done multiple times to increase explanatory power.
• D) the computational requirements are less.
• E) there are multiple independent variables.

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Definitions:

Opportunity Costs

The cost of foregone alternatives, or what is given up to engage in one activity instead of another.

Efficiency

The extent to which resources are used optimally to achieve a specific outcome with minimal waste.

Incentives

Factors, usually financial or material rewards, that motivate individuals or firms to act in a certain way.

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of oil-producing countries that coordinates and unifies the petroleum policies of its member states.