When the Error Variance Is Nonconstant,it Is Common to See

question 39

Multiple Choice

When the error variance is nonconstant,it is common to see the variation increases as the explanatory variable increases (you will see a "fan shape" in the scatterplot) .There are two ways you can deal with this phenomenon.These are

• A)the weighted least squares and a logarithmic transformation.
• B)the partial F and a logarithmic transformation.
• C)the weighted least squares and the partial F.
• D)stepwise regression and the partial F.

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Definitions:

Journalizing

The act of recording financial transactions in a company's journal, detailing the accounts that are affected and in which direction.

Posting Process

The act of recording financial transactions in the appropriate accounts within the general ledger.

Debit or Credit Posting

The act of recording an entry on the left (debit) or right (credit) side of a financial account in the accounting ledger.

Trial Balance

An organized accounting sheet where the sum of all ledger balances is equally distributed between debit and credit columns.