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?
A.
Variable B is interacting with another variable due to correlated inputs
B.
Variable B needs a quadratic transformation due to its relationship to the dependent variable
C.
The information gain from variable B is already provided by another variable
D.
Variable B needs a logarithmic transformation due to its relationship to the dependent variable
who can help to answer it?
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You may refer to the SO thread here –
https://stats.stackexchange.com/questions/65446/postive-correlation-but-negative-coefficient-in-regression
and by elimination logic –
B & D do not make sense since a transformation of this type cannot invert the coefficient sign but can only impact the magnitude.
C does not make sense.
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