When selecting explanatory variables to include in a regression
A) you should pick all observable variables available.
B) you should pick all observable variables that are likely to have a meaningful impact on the dependent variable.
C) ignore all variables that have t-statistics less than the critical value.
D) ignore variables that have an R2 less than 1.
B
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If a market is not subject to large, frequent shifts in demand,
a. firms will have a tendency to lower prices to increase market share b. the market will have few firms c. prices will approach equilibrium very slowly d. price leadership will rarely occur e. cheating on collusive agreements is more difficult
If the income multiplier is 2 and the equilibrium national income level is $8,000 billion, then a $500 billion decrease in aggregate expenditure will cause
a. the aggregate expenditure curve to shift to the right and national income to increase by $1,000 billion b. the aggregate expenditure curve to shift to the left and national income to decrease by $1,000 billion c. the aggregate expenditure curve to shift to the right and national income to increase by $2,000 billion d. the aggregate expenditure curve to remain unchanged but an upward movement along the curve that shows a $2,000 increase in national income e. the aggregate expenditure curve to remain unchanged but an upward movement along the curve that shows a $2,000 decrease in national income
Country X has a high unemployment rate. It follows that country X is operating
A) beyond its production possibilities frontier (PPF). B) on its PPF. C) inside (below) its PPF. D) at a productive efficient point. E) b and d
The largest source of tax revenue for the U.S. federal government is:
A. personal income taxes. B. property taxes. C. corporate income taxes. D. sales and excise taxes.