To Test Whether an Individual Independent Variable Makes a Significant

question 125

Short Answer

To test whether an individual independent variable makes a significant contribution to a multiple regression model,we would use a hypothesis test based on the ___ distribution.

---

Definitions:

DOL

Department of Labor, a U.S. government department responsible for occupational safety, wage standards, unemployment insurance benefits, re-employment services, and some economic statistics.

Financial Leverage

The use of debt to increase the potential return of an investment.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in revenue, indicating the degree to which fixed costs affect profitability.

Sales Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.