The Reason an Analyst Creates a Regression Model Is

question 69

Multiple Choice

The reason an analyst creates a regression model is

• A) to determine the errors in the data collected.
• B) to predict a dependent variable value given specific independent variable values.
• C) to predict an independent variable value given specific dependent variable values.
• D) to verify the errors are normally distributed.

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Definitions:

Government Spending

Expenditures by the government sector on goods and services, including public services and government investment, but excluding transfer payments.

Price Index

A statistical measure that shows changes in the price level of a basket of goods and services over time, used to gauge inflation.

Phillips Curve

An economic theory suggesting an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Inflation

A continuous rise in the overall price level of goods and services within an economy over a period.