Caution Must Be Exercised in Using Regression Models for Prediction

Multiple Choice

Caution must be exercised in using regression models for prediction when:

A) the value of the independent variable lies inside the range of observations from which the model was estimated
B) the value of the independent variable lies outside the range of observations from which the model was estimated
C) diminishing returns are present
D) the existence of saturation levels are present
E) none of the above