When Determining Whether to Include or Exclude a Variable in Regression

question 60

Multiple Choice

When determining whether to include or exclude a variable in regression analysis,if the p-value associated with the variable's t-value is above some accepted significance value,such as 0.05,then the variable:

• A) is a candidate for inclusion
• B) is a candidate for exclusion
• C) is redundant
• D) not fit the guidelines of parsimony

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Definitions:

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for work performed, typically expressed on an hourly, daily, or piecework basis.

Wage Rate

The standard amount of compensation given to employees for their labor, typically measured per hour or piece of work done.

Wage Rate

The amount of compensation received by an employee per hour worked or for a specific task completed.

MRP

Marginal Revenue Product, the additional revenue generated by employing one more unit of a resource, critical in resource allocation.