Cheryl Used Age, Education, and Income to Predict Scores on a Life

question 43

Multiple Choice

Cheryl used age, education, and income to predict scores on a life satisfaction survey. Her regression equation accounted for 58% of the variance in life satisfaction. She collects a new sample and applies her equation.
-This process is referred to as

• A) discriminate testing
• B) sample attenuation
• C) cross-validation
• D) regression reliability

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Definitions:

Opportunity Costs

The cost of foregoing the next best alternative when making a decision.

Cash Inflows

This term refers to the money coming into a business from its operational, financing, and investing activities.

Assets

Resources owned or controlled by a business, entity, or individual, with future economic value that can be measured and expressed in financial terms.

Externalities

Effects a project has on other parts of the firm or on the environment.