Financial planning and forcasting

1. What are the characteristics of a good predictor variable?

2. What are the assumptions associated with the multiple regression model?

1. What does the partial, or net, regression coefficient measure in multiple regression?

2. What does the standard error of the estimate measure in multiple regression?

1. What is the purpose of deflating a time series that is measured in dollars?

2. In the base period of June, the price of a selected quantity of goods was $1,289.73. In the most recent month, the price index for these goods was 284.7. How much would the selected goods cost if purchased in the most recent month?

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