Which of the following is not a common pitfall of using regression to forecast?
A)Making predictions outside the range of data used to develop the model
B)Overly generalizing a regression model
C)Assuming a cause-and-effect relationship based on the model
D)Using a model with a negative slope coefficient
E)All of the above are common pitfalls

Question

Quizplus · Accepted Answer

Using a model with a negative slope coefficient is not a common pitfall of using regression to forecast. However, making predictions outside the range of data used to develop the model, overly generalizing a regression model, and assuming a cause-and-effect relationship based on the model are all common pitfalls.

Which of the Following Is Not a Common Pitfall of Using