For the Same Set of Observations on a Specified Dependent

question 49

Multiple Choice

For the same set of observations on a specified dependent variable,two different independent variables were used to develop two separate simple linear regression models.A portion of the results is presented below. Based on the results given above,we can conclude that

• A) a prediction based on Model 1 is better than a prediction based on Model 2.
• B) a prediction based on Model 2 is better than a prediction based on Model 1.
• C) there is no difference in the predictive ability between Model 1 and Model 2.
• D) there is not sufficient information to determine which of the two models is superior for prediction purposes.

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Definitions:

Unrelated Products

Products that have no significant connection or complementarity in use, production, or marketing to each other.

Existing Goods

Products that have already been manufactured and are available for sale or distribution.

Revenue Analysis

The process of examining revenue data to understand the financial performance of a business and to identify trends and opportunities for improvement.

Profit Margin

The amount a product sells for above the total cost of the product itself.