Which Statement Is Incorrect

question 121

Multiple Choice

Which statement is incorrect?

• A)Binary predictors shift the intercept of the fitted regression.
• B)If a qualitative variable has c categories, we would use only c - 1 binaries as predictors.
• C)A binary predictor has the same t test as any other predictor.
• D)If there is a binary predictor (X = 0, 1) in the model, the residuals may not sum to zero.

Understand the factors influencing autonomous and induced consumption.

Identify the effects of interest rate changes on savings and consumption.

Recognize the significance of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS).

Apply the permanent income hypothesis to predict consumer behavior in response to changes in income and taxation.

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Definitions:

Schematic Drawing

A simplified representation of an idea, object, or system, used to understand or explain its structure or function.

Most Direct

Refers to the simplest or straightest path or method to achieve something without detours or intermediaries.

Obstacle-Free Path

A route or course of movement that does not have any barriers or hindrances, facilitating smooth progression.

Bilingual Micmac Children

Refers to children from the Micmac community who are raised speaking both their native Micmac language and another language.