A Variable Transformation in a Regression (E

question 70

Multiple Choice

A variable transformation in a regression (e.g., replacing Y with log(Y) ) :

• A)may reduce heteroscedasticity.
• B)changes the model specification.
• C)makes the model easier to interpret.
• D)leads to severe autocorrelation.

---

Definitions:

Confidence Interval

A variety of values obtained from sample observations, which are predicted to include the value of a not-yet-known population characteristic.

Confidence Interval

A statistical range, with a certain probability, that is likely to contain the value of an unknown parameter.

Students Retained

Refers to pupils who are held back or repeat a grade level in school due to academic or other reasons.

Incentive Program

A strategy or scheme designed to motivate and encourage specific behaviors or actions by offering rewards or benefits.