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:

Monopolist

A solo producer or seller in a market who has significant control over the pricing and availability of a product or service, with no direct competition.

Barriers To Entry

Economic or legal obstacles that prevent new competitors from easily entering an industry or area of business.

Product Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Oligopolists

Firms that are part of an oligopoly, a market structure characterized by a few companies dominating the market.