In Stepwise Regression Procedure, What Occurs If Two Independent Variables

question 40

Multiple Choice

In stepwise regression procedure, what occurs if two independent variables are highly correlated?

• A) Both variables will enter the equation.
• B) Only one variable will enter the equation.
• C) Neither variable will enter the equation.
• D) A third variable equal to their sum will replace them in the equation.

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Definitions:

Natural Monopoly

A market condition where due to high fixed or start-up costs, the most efficient number of firms in the industry is one.

Electric Power

The production and delivery of electricity through an interconnected network for uses such as lighting, heating, and powering appliances.

New Technology

The development and application of innovative tools, machines, techniques, and methods that improve the efficiency and productivity of operations.

Natural Monopolies

Industries where a single firm can supply a good or service to an entire market at a lower cost than two or more firms could, often due to economies of scale.