Which of the following is true about the R2 (R-squared) statistic?a.We generally want its value to be low. |
b. It describes the amount of the explanatory variable explained by the regression. |
c. It is accurately described by none of the given options. |
d. It can be between 0 and 1, but never at exactly 0 or 1. |
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Consider the following estimated demand equation:
Q = 1420 - 80p + 1.3Y
Which of the following is true about this demand equation?
a. It does not appear to follow the law of demand. |
b. It has two dependent variables and one independent variable. |
c. All variables are statistically significant. |
d. It contains two explanatory (independent) variables. |
Lagging economic indicators are very often used (according to lecture)
a. to describe what's going on in the economy right now |
b. to determine the best policy response |
c. to predict recessions or periods of excessive inflation |
d. to analyze historical events
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