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