Stepwise Regression Analysis Is a Procedure That Is Implemented by Computer

question 116

True/False

Stepwise regression analysis is a procedure that is implemented by computer and is available in most statistical packages. It is used mainly to determine which of a large number of independent variables should be included in the model.

---

Definitions:

Economic Model

A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.

Simplified

Made easier to understand or do; reduced in complexity.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.

Invisible Hand

A metaphor introduced by Adam Smith to describe how individuals pursuing their own interests unintentionally benefit society as a whole.