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:

Price Level

A comprehensive average of prices for all goods and services within the economic output.

Inflation

The surge in the overall pricing structure for goods and services, undermining the efficiency of spending.

Goods and Services

The outputs produced by the economy, where goods are tangible objects and services are intangible offerings that satisfy consumer needs or wants.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced over a specific period.