Which of the Following Is a Reason Why Multiple Regression

question 61

Multiple Choice

Which of the following is a reason why multiple regression designs are inferior to experimental designs?

• A)They can only control for third variables that are measured.
• B)They cannot establish covariance.
• C)They take longer to conduct.
• D)They are more expensive to conduct.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Diseconomies of Scale

A phenomenon where a company's production costs increase due to an expansion in output, leading to inefficiencies.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance.

Diseconomies of Scale

The phenomenon where production cost per unit increases as the scale of output increases, usually due to factors like increased complexity and inefficiencies.