A Decision Maker Has Five Potential Independent Variables with Which

question 30

Multiple Choice

A decision maker has five potential independent variables with which to build a regression model to explain the variation in the dependent variable.At step 1,variable x₃ enters the regression model.Which of the following indicates which of the four remaining independent variables will be next to enter the model?

• A)The variable that has the next highest correlation with the dependent variable
• B)The variable that will provide the next largest value for the slope coefficient
• C)The variable with the highest coefficient of partial determination
• D)Can't be determined without seeing the correlation matrix.

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Definitions:

Vouchers Payable

An accounting term used to represent records of transactions or evidence of expenditure awaiting payment.

Withdrawals

A subdivision of owner’s equity that records money or other assets an owner withdraws from a business for personal use.

Vouchers Payable

Short-term obligations or liabilities that represent amounts owed to suppliers or creditors, which are supported by documentary evidence of the transaction.

Accounts Payable

Liabilities or amounts owed to creditors for goods and services that have been received but not yet paid for by the business.