Which of These Statements Is Not True

question 26

Multiple Choice

Which of these statements is not true?

• A)If the average variance inflation factor is greater than 1 then the regression model might be biased.
• B)Multicollinearity in the data is shown by a VIF (variance inflation factor) greater than 10.
• C)Tolerance values above 0.2 may indicate multicollinearity in the data.
• D)The tolerance is 1 divided by the VIF (variance inflation factor).

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Definitions:

Derived Demand

Demand for a commodity, service, etc., that is a consequence of the demand for something else; for instance, the demand for steel is derived from the demand for automobiles.

Just-In-Time

An inventory strategy that aligns raw-material orders from suppliers directly with production schedules to minimize stock levels.

EOQ

Economic Order Quantity; the ideal order quantity a company should purchase to minimize its inventory costs, including holding, shortage, and order costs.

Just-In-Time

An inventory management strategy that aims to increase efficiency and reduce waste by receiving goods only as they are needed in the production process.