The first step in multiple regression analysis is to:
A) procure a powerful computer.
B) identify the important variables.
C) specify a functional form to be estimated.
D) gather all available data.
E) select an estimation procedure.

Question

Quizplus · Accepted Answer

Identifying the important variables is the first step in multiple regression analysis. This involves determining which variables are relevant to the problem being studied and should be included in the regression equation. Once the variables are identified, a functional form can be specified, data can be gathered, and an estimation procedure can be selected. Having a powerful computer may be helpful, but it is not the first step.

The First Step in Multiple Regression Analysis Is To