Regression analyses can be limited by all of the following except which one?
A)omission of relevant variables
B)the specification of the regression
C)the inclusion of a random error term
D)the functional form of the regression

Question

Quizplus · Accepted Answer

The inclusion of a random error term is not a limitation of regression analysis, but rather a necessary component of the model to account for unobserved factors that may influence the outcome variable. The other options (omission of relevant variables, specification of the regression, and functional form of the regression) can all lead to biased or inefficient estimates of the regression coefficients and can therefore limit the usefulness of the analysis.

Regression Analyses Can Be Limited by All of the Following