Answer (C) is correct . Simple regression uses the algebraic formula for a straight line, y = a + bx, where x is the independent variable. Multiple regression is used when there is more than one independent variable. Multiple regression allows a firm to identify many factors (independent variables) and to weight each one according to its influences on the overall outcome (y = a + b 1x 1 + b 2 x2 + b 3x3 + etc.).
Answer (A) is incorrect because Simple regression uses the algebraic formula for a straight line, y = a + bx, where x is the independent variable. Multiple regression is used when there is more than one independent variable. Multiple regression allows a firm to identify many factors (independent variables) and to weight each one according to its influences on the overall outcome (y = a + b 1x 1 + b 2 x2 + b 3x3 + etc.).
Answer (B) is incorrect because Simple regression uses the algebraic formula for a straight line, y = a + bx, where x is the independent variable. Multiple regression is used when there is more than one independent variable. Multiple regression allows a firm to identify many factors (independent variables) and to weight each one according to its influences on the overall outcome (y = a + b 1x 1 + b 2 x2 + b 3x3 + etc.).
Answer (D) is incorrect because Simple regression uses the algebraic formula for a straight line, y = a + bx, where x is the independent variable. Multiple regression is used when there is more than one independent variable. Multiple regression allows a firm to identify many factors (independent variables) and to weight each one according to its influences on the overall outcome (y = a + b 1x 1 + b 2 x2 + b 3x3 + etc.). Both methods use only one dependent variable.
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