What Common Sense Criteria Should Be Applied to Statistical Analysis

question 41

Multiple Choice

What common sense criteria should be applied to statistical analysis when evaluating cost drivers using regression analysis?

• A)goodness of fit
• B)economic plausibility
• C)the significance of the difference between the costs associated with the highest and lowest observations of the cost driver
• D)the significance of the difference between the unit values for the highest and lowest observations of the cost driver
• E)the Durbin-Watson statistic

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Definitions:

Global Warming

Increasing global atmospheric and oceanic temperatures as measured or inferred from some point in the past to the present.

Lithosphere

The rigid outer layer of the earth, including the crust and upper mantle, which is divided into tectonic plates.

Biosphere

The global sum of all ecosystems, including all living organisms and their relationships to each other and to their environments.

Groundwater

Water that occurs in the pores, fractures, and cavities in the subsurface.