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.

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Definitions:

Sarbanes-Oxley

Legislation aimed at enhancing corporate governance and strengthening the accuracy and reliability of corporate disclosures.

Financial Overhaul

Comprehensive restructuring of the financial regulations and systems to improve their efficiency and stability.