In Evaluating the Economic Plausibility of a Regression Model, the Analyst

Multiple Choice

In evaluating the economic plausibility of a regression model, the analyst is determining

A) the statistical significance of the relationship of the independent variable, X with the dependent variable, Y.
B) whether the chosen independent variable, X, is a viable, sensible predictor of the dependent variable, Y, using judgment and understanding of cause-and-effect relationships.
C) the degree to which the regression line fits the actual observations.
D) the correlation of variable costs to fixed costs in the total cost line determination.