Business Stats Midterm #3
SSE can never be _____.
larger than SST
The standardized residual is provided by dividing each residual by its _____.
standard deviation
In a residual plot that does not suggest we should challenge the assumptions of our regression model, we would expect to see a _____.
horizontal band of points centered near 0
The numerical value of the coefficient of determination _____.
can be larger or smaller than the coefficient of correlation
A procedure used for finding the equation of a straight line that provides the best approximation for the relationship between the independent and dependent variables is ______.
the least squares method
SST =
SSR + SSE
The multiple coefficient of determination is _____.
SSR/SST
In a multiple regression model, the error term ε is assumed to _____.
be normally distributed
The interval estimate of the mean value of y for a given value of x is the _____.
confidence interval
A variable that takes on the values of 0 or 1 and is used to incorporate the effect of qualitative variables in a regression model is called a(n) _____.
dummy variable
In a multiple regression model, the values of the error term, ε, are assumed to be _____.
independent of each other
If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on these data _____.
is 1
A least squares regression line ______.
may be used to predict a value of y if the corresponding x value is given
The least squares criterion is _____.
min Σ(y-ŷi)2
In multiple regression analysis, the correlation among the independent variables is termed _____
multicollinearity
The mathematical equation that explains how the dependent variable y is related to several independent variables x1 , x2 , ..., xp and the error term ε is a(n) _____.
multiple regression model
Application of the least squares method results in values of the y-intercept and the slope that minimizes the sum of the squared deviations between the _____.
observed values of the dependent variable and the predicted values of the dependent variable
A variable that cannot be measured in terms of how much or how many but instead is assigned values to represent categories is called a(n) _____.
qualitative variable
The primary tool or measure for determining whether the assumed regression model is appropriate is _____.
residual analysis
In regression analysis, an outlier is an observation whose _____.
residual is much larger than the rest of the residual values
The adjusted multiple coefficient of determination is adjusted for _____.
the number of independent variables
In a multiple regression model, the variance of the error term ε is assumed to be _____.
the same for all values of the independent variable
As the goodness of fit for the estimated multiple regression equation increases, _____.
the value of the multiple coefficient of determination increases
