When Referencing NAICS Codes, Marketers Should Know That

question 80

Multiple Choice

When referencing NAICS codes, marketers should know that:

• A) two-digit industries are subindustries of the three-digit industries.
• B) two-digit codes offer the broadest categorization of industries.
• C) categories become less detailed as you move to codes with more digits.
• D) the international version of the NAICS system is the most accurate and reliable.
• E) NAICS codes provide detailed information about the apparel industry only.

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Definitions:

Multicollinearity

Multicollinearity refers to the occurrence in statistical models where two or more predictor variables are highly correlated, making it difficult to distinguish their individual effects.

Parameter Estimates

Parameter estimates are values derived from statistical analysis that approximate the actual parameters of a population based on sample data.

Biased

A condition where a measure or estimate systematically deviates from the true value due to a flaw in the measurement or sampling process.

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, potentially distorting the model's estimations.