A predicted value of a dependent variable:
A. represents the difference between the expected value of the dependent variable and its actual value.
B. is always equal to the actual value of the dependent variable.
C. is independent of explanatory variables and can be estimated on the basis of the residual error term only.
D. represents the expected value of the dependent variable given particular values for the explanatory variables.
A variable is standardized in the sample:
A. by multiplying by its mean.
B. by subtracting off its mean and multiplying by its standard deviation.
C. by subtracting off its mean and dividing by its standard deviation.
D. by multiplying by its standard deviation.
A nonlinear function
A. makes little sense, because variables in the real world are related linearly.
B. can be adequately described by a straight line between the dependent variable and one of the explanatory variables.
C. is a concept that only applies to the case of a single or two explanatory variables since you cannot draw a line in four dimensions.
D. is a function with a slope that is not constant.
In nonlinear models, the expected change in the dependent variable for a change in one of the explanatory variables is given by
A. △Y = f(X1 + X1, X2,... Xk).
B. △Y = f(X1 + △X1, X2 + △X2,..., Xk+ △Xk)- f(X1, X2,...Xk).
C. △Y = f(X1 + △X1, X2,..., Xk)- f(X1, X2,...Xk).
D. △Y = f(X1 + X1, X2,..., Xk)- f(X1, X2,...Xk).