A Valid Multiple Regression Analysis Assumes or Requires That ________

question 32

Multiple Choice

A valid multiple regression analysis assumes or requires that ________.

• A)the dependent variable is measured using an ordinal,interval,or ratio scale
• B)the residuals follow an F-distribution
• C)the independent variables and the dependent variable have a linear relationship
• D)the observations are auto correlated

---

Definitions:

Consumption Smoothing

An economic concept that describes how individuals attempt to achieve a stable level of consumption over their lifetime, regardless of fluctuations in income.

Defined Benefit Pension

A type of pension plan where an employer promises a specified monthly benefit upon retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.

Defined Contribution Plan

A retirement plan where contributions are defined, but the eventual payout depends on the investment's success.

Investment Risk

The possibility that an investment's actual return will differ from the expected return, including the potential loss of some or all of the original investment.