Which of the Following Statements Shows a Difference Between Simple

question 12

Multiple Choice

Which of the following statements shows a difference between simple regression and multiple regression?

• A) Simple regression uses more than one dependent and independent variables, whereas multiple regression uses only one dependent and independent variable.
• B) Simple regression uses only the independent variables, whereas multiple regression uses only dependent variables.
• C) Simple regression uses only one dependent and one independent variable, whereas multiple regression uses one dependent and more than one independent variable.
• D) Simple regression uses only one dependent variable and more than one independent variables, whereas multiple regression uses more than one dependent variable and only one independent variable.

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Definitions:

Premium

An amount paid in excess of the nominal or face value, often in relation to insurance policies, bonds, or shares.

Effective Interest Rate

The actual return on an investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Contract Interest Rate

The interest rate specified in a loan agreement or contract, typically fixed for the life of the loan.

Face Value

The nominal value or dollar value of a security stated by the issuer, also known as par value, especially relevant for bonds and stock certificates.