Which of the following conclusions is justified by the change?
A. Changing to a cross-sectional regression analysis should cause r2to increase.
B. Regression analysis is no longer an appropriate technique to estimate interest income.
C. Some new factors not included in the model are causing interest income to change.
D. A linear regression analysis would increase the model’s reliability.
Answer:C
Which of the following conclusions is justified by the change?
A. Changing to a cross-sectional regression analysis should cause r2to increase. B. Regression analysis is no longer an appropriate technique to estimate interest income. C. Some new factors not included in the model are causing interest income to change. D. A linear regression analysis would increase the model’s reliability.