What does the principle of parsimony suggest?
A) A simple model with fewer independent variables may not produce an effective result.
B) The fewest number of explanatory variables that explain the independent variable need to be included in the model.
C) Good regression models are often based on sound technical analysis.
D) To avoid the problem of multicollinearity, the number of independent variables need to be sufficiently high.
Question 2
Find the confidence interval for a population mean of 615 acres at a 90 level of confidence with a sample size of 52 and standard deviation of 27 acres.
A) 189 to 1190 acres
B) 608.84 to 621.16 acres
C) 452 to 4252 acres
D) 172 to 2008 acres
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Parsimony Analysis