All of the Following Are Part of an Economic Model

question 192

Multiple Choice

All of the following are part of an economic model except

• A)assumptions.
• B)hypotheses.
• C)data.
• D)opinions.

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Definitions:

Multicollinearity

A condition in regression analysis where two or more predictors are highly correlated, making it challenging to isolate the individual effect of each predictor on the dependent variable.

Independent Variables

Variables in an experiment or regression that are manipulated or categorized to determine their effect on dependent variables.

Dependent Variable

The outcome variable in a study, experiment, or statistical model, whose variation depends on factors represented by independent variables.

Multicollinearity

A statistical phenomenon in which multiple independent variables in a regression model are highly linearly related, affecting the model’s accuracy.