Economic Models

question 58

Multiple Choice

Economic models

• A)should be designed so as to capture every detail or interrelationship that exists.
• B)are simplified representations of the real world.
• C)must employ the use of laboratory methods.
• D)All of the above are correct.

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Definitions:

Multivariate Regression

A statistical technique used to understand the relationship between one dependent variable and two or more independent variables.

Simple Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Multiple Regression

A statistical technique that models the relationship between a dependent variable and two or more independent variables by fitting a linear equation to observed data.

Regression Line

A line in regression analysis that best fits a set of data points, representing the predicted relationship between an independent variable and a dependent variable.