1. An analyst ran a regression with four predictor variables.Variable descriptionVariableNameSalary in R1000.00Years at companyAge in yearsEducation in yearsSALARYYEARSAGEEDYEARSHe suspects that AGE can be dropped from the model and he decided to employ forwardstepwise regression. Show all the steps he has to do to get to a fitted response regression withoutage.2. BIC, Bayesian information criteria or SBC, Schwarz' Bayesian Criteria, are the same. Give theaquations for AIC and BIC and explain the difference in these two equations in terms of the termsin the equations as well as the consequences.3. Give a short description of measuring the actual predictive capabilities of the selected regression.model.

Regression analysis refers to the prediction of the dependent variable by the independent variable.…

1. An analyst ran a regression with four predictor variables. Variable description Salary in R1000.00 Years at company Age in years Education in years Variable Name SALARY YEARS AGE EDYEARS He suspects that AGE can be dropped from the model and he decided to employ forward stepwise regression. Show all the steps he has to do to get to a fitted response regression without age.

1. An analyst ran a regression with four predictor variables. Variable description Salary in R1000.00 Years at company Age in years Education in years Variable Name SALARY YEARS AGE EDYEARS He suspects that AGE can be dropped from the model and he decided to employ forward stepwise regression. Show all the steps he has to do to get to a fitted response regression without age.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 8E

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If we run a regression where y (bankruptcy) = f (factors potentially predicting bankruptcy), what is the dependent variable?
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