Which of the Assumptions Listed Below Are Necessary in Order

question 24

Multiple Choice

Which of the assumptions listed below are necessary in order for the coefficients in a partial regression equation to be interpreted as the average change in the criterion variable associated with a unit change in the appropriate predictor variable holding other predictor variables constant?

• A)The predictor variables must be correlated.
• B)The variance among predictor variables must be equal.
• C)The criterion variable must be normally distributed.
• D)The predictor variables must be uncorrelated.
• E)None of these are necessary assumptions.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers.

Income

The financial return or earnings from employment, investments, or business ventures.

Income Effect

The change in consumption that results from a change in real income, holding prices constant.

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