It is dangerous to predict outside the range of the data collected in a regression analysis. For instance, we shouldn't predict the price of a 5000 square foot home if all our sample homes were smaller than 4500 square feet. Which of the following multiple regression pitfalls does this example describe?
A) Estimability
B) Multicollinearity
C) Extrapolation
D) Stepwise Regression

Question

Quizplus · Accepted Answer

Extrapolation refers to making predictions outside the range of the data used to create the model, which can lead to unreliable or inaccurate results.

It Is Dangerous to Predict Outside the Range of the Data