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E20-007 · Question #78

Refer to the exhibit. After analyzing a dataset, you report findings to your team: 1. Variables A and C are significantly and positively impacting the dependent variable. 2. Variable B is…

The correct answer is A. Variable B is interacting with another variable due to correlated inputs. See the full explanation below for the reasoning.

Question

Refer to the exhibit. After analyzing a dataset, you report findings to your team: 1. Variables A and C are significantly and positively impacting the dependent variable. 2. Variable B is significantly and negatively impacting the dependent variable. 3. Variable D is not significantly impacting the dependent variable. After seeing your findings, the majority of your team agreed that variable B should be positively impacting the dependent variable. What is a possible reason the coefficient for variable B was negative and not positive?

Options

  • AVariable B is interacting with another variable due to correlated inputs
  • BVariable B needs a quadratic transformation due to its relationship to the dependent variable
  • CThe information gain from variable B is already provided by another variable
  • DVariable B needs a logarithmic transformation due to its relationship to the dependent variable

How the community answered

(23 responses)
  • A
    70% (16)
  • B
    17% (4)
  • C
    4% (1)
  • D
    9% (2)

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Full E20-007 Practice