An analyst wants to build a regression model to predict spending from the following four predictor variables:
Question:
Why might a stepwise regression search not find the same model as an all subsets regression?
Transcribed Image Text:
Income Net Worth Age Past Spending 0.442 0.433 Income Net Worth 0.446 0.968 0.992 0.976
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
The correlation matrix shows some very high correlations among the potential indepe...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Business Statistics
ISBN: 9780321925831
3rd Edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
Question Posted:
Students also viewed these Statistics questions
-
An athletic team wants to build a new sports arena in the middle of the downtown area. The team has bought enough land for the stadium, but needs more land to build an adjacent parking lot. The team...
-
A marketing manager has developed a regression model to predict quarterly sales of his companys down jackets based on price and amount spent on advertising. An intern suggests that he include an...
-
A marketing manager has developed a regression model to predict quarterly sales of his companys mid-weight microfiber jackets based on price and amount spent on advertising. An intern suggests that...
-
Harpo Marks Corporation produces and sells forklift trucks. Model 17A (the Chico) has a list price of $ 70,000. The production cost for the 20 finished Chicos in inventory at the end of 20X4 was $...
-
Consider the following figures where the lighter line is the original budget constraint for a consumer and the darker line is the new one. Examine each case and explain what could have caused the...
-
Best of luck! Question 1 Which one of the following statements is correct? There is an indirect relationship between risk and return. Large-company stocks are historically riskier than small-company...
-
Understand the relationship between estimating resources and project schedules? LO.1
-
Journalize the following transactions in the accounts of Pro Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 30. Sold...
-
Required information [The following information applies to the questions displayed below.) Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the...
-
Young Professional magazine was developed for a target audience of recent college graduates who are in their first 10 years in a business/professional career. In its two years of publication, the...
-
For the same regression as in Exercise 9, the Cooks Distances look like this: The outlier, once again, is John Carter, whose budget was more than $200M more than its gross revenue in the U.S. Setting...
-
The analyst in Exercise fits the model with the four predictor variables. The regression output shows: Response Variable: Spending R2 = 84.92% Adjusted R2 = 84.85% s = 48.45 with 908 - 5 = 903...
-
You invest $1,000 in a large company stock and $1,000 in a corporate bond. If you earn 10.0 percent on the stock and 6.0 percent on the bond and hold each security for 10 years, what are the terminal...
-
Working in the production area of a manufacturing company is right where William feels at home. Several of his family members had worked in similar environments throughout their careers, and he loves...
-
Use the Nernst equation and reduction potential data from (Petrucci's Appendix D; OpenStax's Table 16.1) to calculate Ecell for the following cell: Al (s) | Al3+ (0.18 M) || Fe+ (0.85 M) | Fe (s)
-
1.) Describe economic interventions that the federal government used to deal with the COVID shutdown and subsequent inflation. Would you have done anything differently? 2.) Describe three of the...
-
The goal is to understand the principles of project valuation and capital budgeting in a practical setting, using a combination of fictitious data and real-world examples. Begin by proposing a...
-
45. The use of realistic predetermined unit costs to facilitate product costing, cost control, cost flow, and inventory valuation is a description of the A. flexible budget concept. B. budgetary...
-
Independent internal verification of inventory (i.e., proper segregation of duties) occurs when employees who a. Issue raw materials obtain materials requisitions for each issue and prepare daily...
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
Determine the total condensation rate and heat transfer rate for the process of Problem 10.35 when the pipe is oriented at angles of \(\theta=0,30,45\), and \(60^{\circ}\) from the horizontal. Data...
-
A company has developed a new light bulb that seems to burn longer than most residential bulbs. To determine how long these bulbs burn, the company randomly selects a sample of these bulbs and burns...
-
Suppose a researcher wants to estimate the average age of a person who is a first-time home buyer. A random sample of first-time home buyers is taken and their ages are ascertained. The Minitab...
-
What proportion of all American workers drive their cars to work? Suppose a poll of American workers is taken in an effort to answer that question, and the Minitab output shown here is an analysis of...
-
Assignment Title: The Role of Bookkeeping in Business Management and Financial Reporting Objective: Understand the importance of proper bookkeeping procedures in the management of...
-
17) The adjustment that is made to allocate the cost of a building over its expected life is called:A) depreciation expense.B) residual value.C) accumulated depreciation.D) None of the above answers...
-
9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11)...
Study smarter with the SolutionInn App