Which of the Following Iterative Search Procedures for Model-Building in a Multiple

question 44

Multiple Choice

Which of the following iterative search procedures for model-building in a multiple regression analysis reevaluates the contribution of variables previously include in the model after entering a new independent variable?

• A)Backward elimination
• B)Stepwise regression
• C)Forward selection
• D)All possible regressions
• E)Backward selection

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Definitions:

Recessionary Gap

The difference between the actual level of GDP and the potential level of GDP in an economy, indicating economic underperformance.

Classical Economists

A group of 18th- and 19th-century economists who believed that economic downturns corrected themselves through natural market forces; thus, they believed the economy was self-correcting and needed no government intervention.

John Maynard Keynes

An influential British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Expansionary Gap

A situation where actual output in an economy exceeds the potential output, leading to inflationary pressures due to high demand.