If You Rerun a Regression,omitting a Predictor X5,which Would Be

question 30

Multiple Choice

If you rerun a regression,omitting a predictor X5,which would be unlikely?

• A)The new R2 will decline if X5 was a relevant predictor.
• B)The new standard error will increase if X5 was a relevant predictor.
• C)The remaining estimated β's will change if X5 was collinear with other predictors.
• D)The numerator degrees of freedom for the F test will increase.

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Definitions:

Credit Sales

Sales made by a business where the payment is deferred to a later date, often involving credit terms.

COGS

Stands for Cost of Goods Sold and refers to the direct costs attributable to the production of the goods sold by a company.

Payables Turnover Rate

A liquidity metric that measures how quickly a company pays off its suppliers by dividing total purchases by average accounts payable.

Accounts Payable Balance

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.