Which of the Following Statements About Stepwise Regression Is True

question 19

Multiple Choice

Which of the following statements about stepwise regression is true?

• A)It uses only dependent variables and adds them one by one.
• B)It uses independent variables with insignificant regression coefficients.
• C)It is a step-by-step method that adds independent variables one by one in order to build a more efficient regression equation.
• D)It selects the independent variable with the weakest correlation first.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, reflecting the liquidity available for shareholders.