An Analyst Has Identified 3 Independent Variables (X₁, X₂, X₃)

question 54

Multiple Choice

An analyst has identified 3 independent variables (X₁, X₂, X₃) which might be used to predict Y. He has computed the regression equations using all combinations of the variables and the results are summarized in the following table. Which combination of variables provides the best regression results?

• A) X₁
• B) X₁, X₂ and X₃
• C) X₁ and X₂
• D) X₂ and X₃

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Definitions:

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