Given a model where the variables are on a different scale, in order to make them comparable we need to:
A) Standardize the model by dividing the difference of the variable from its average by its standard deviation.
B) Don't need to do anything and can run the model in its unaltered form.
C) Standardize the model by taking the log/ln of each variable.
D) Standardize the model by dividing the coefficient of each variable by its standard deviation.

Question

Quizplus · Accepted Answer

Standardizing the model by dividing the difference of the variable from its average by its standard deviation is called z-score standardization, which transforms the variables to have a mean of 0 and standard deviation of 1. This allows for meaningful comparisons between variables, regardless of their scale. Therefore, this is the best choice to make the variables comparable.

Given a Model Where the Variables Are on a Different