In multiple regression, the ________ procedure permits variables to enter and leave the model at different stages of its development.
A) residual analysis B) backward elimination
C) stepwise regression D) forward selection
Question 2
A microeconomist wants to determine how corporate sales are influenced by capital and wage spending by companies. She proceeds to randomly select 26 large corporations and record information in millions of dollars. A statistical analyst discovers that capital spending by corporations has a significant inverse relationship with wage spending. What should the microeconomist who developed this multiple regression model be particularly concerned with?
A) Collinearity B) Normality of residuals
C) Missing observations D) Randomness of error terms