Quant Test 2

If a categorical variable has k levels, the number of dummy variables required is: a) k-1 b) k c) k+1 d) 2k

A) k-1

A measure of goodness of fit for the estimated regression equation is the: a) multiple coefficient of determination b) multicollinearity c) mean square due to regression d) studentized residual

A) multiple coefficient of determination

Heteroscedasticity refers to the situation where the variances of an independent variable is: a) non-constant b) equal to the mean of the dependent variables c) constant d) asymptotic

A) non-constant

In regression analysis, which of the following assumptions is NOT true about the error term E? a) the expected value of the error term is one b) the variance of the error term is the same for all values of x c) te values of the error term are independent d) the error term is normally distrubuted

A) the expected value of the error term is one

In a multiple regression model, the error term E is assumed to be a random variable with a mean of: a) zero b) -1 c) 1 d) any value

A) zero

In multiple regression analysis, the word LINEAR in the term "general linear model" refers to the fact that Bo, B1...Bp all have exponents of: a) 0 b) 1 c) at least 1 d) less than 0

B) 1

In multiple regression analysis in excel, the default setting for confidence intervals for the coefficient estimates is: a) 90% b) 95% c) 5% d) 10%

B) 95%

The correct relationship between SST, SSR, and SSE is given by a) SSR=SST+SSE b) SSR=SST-SSE c) SSE=SSR+SST d) n(SST)=p(SSR)+(n-p)(SSE)

B) SSR=SST-SSE

The joint effect of two independent variables acting together is called: a) autocorrelation b) interaction c) transformation d) joint regression

B) interaction

Models in which the parameters have exponents other than 1 are called: a) independent models b) nonlinear models c) autocorrelated models d) linear models

B) nonlinear models

In simple linear regression analysis, which of the following is NOT true? a) the F test and the t test yield the same conclusion b) the F test and the t test may or may not yield the same conclusion c) the relationship between x and y is represented by a straight line d) the value of F=t^2

B) the F test and the t test may or may not yield the same conclusion

A variable that takes on the values of 0 or 1 and is used to incorporate the effect of categorical independent variable in a regression model is called: a) an interaction b) a constant variable c) a dummy variable d) a logit variable

C) a dummy variable

Which of the following tests is used to determined whether an additional variable makes a significant contribution to a multiple regression model? a) a t test b) a z test c) an F test d) a chi-square test

C) an F test

The proportion of the variation in the dependent variable y that is explained by the estimated regression equation is measured by the: a) correlation coefficient b) standard error of the estimate c) coefficient of determination d) confidence interval estimate

C) coefficient of determination

The model developed from sample data that has the form of Y^=b0+b1x is known as the: a) regression equation b) correlation model c) estimated regression equation d) regression model

C) estimated regression equation

A term used to describe the case when the independent variables in a multiple regression model are correlated is: a) regression b) correlation c) multicollinearity d) leverage

C) multicollinearity

The key t-critical value to be considered when evaluating the statistical significance of an independent variable is: a) -2 b) 2 c) |2| d) |1|

C) |2|

All the independent variables in multiple regression analysis: a) must be quantitative b) must be either quantitative or qualitative but not a mix of both c) must assume only positive values d) can be either quantitative or qualitative or both

D) can be either quantitative or qualitative or both

In multiple regression, a variable that cannot be measured in numerical terms is called a: a) nonmeasurable random variable b) constant variable c) dependent variable d) categorical independent variable

D) categorical independent variable

In simple linear regression, r^2 is the: a) mean square error b) correlation coefficient c) squared residual d) coefficient of determination

D) coefficient of determination

Regression analysis was applied between demand for a product (y) and the price of the product (x), and the following estimated regression equation was obtained. y^=120-10x Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to: a) increase by 120 units b) decrease by 100 units c) increase by 20 units d) decrease by 20 units

D) decrease by 20 units

The following estimated regression equation was developed relating yearly income (y in $1000s) of 30 individuals with their age (x1) and their gender (x2) (O if male and 1 if female) y^=30+0.7x1+3x2 Also provided are SST=1200 and SSE=384. From the above linear function for multiple regression, it can be said that the expected yearly income of a) males is $3 more than females b) females is $3 more than males c) males is $3000 more than females d) females is $3000 more than males

D) females is $3000 more than males

In regression analysis, the model in the form y=B0+B1X+E is called the: a) regression equation b) correlation model c) estimated regression equation d) regression model

D) regression model

In regression analysis, an outlier is an observation whose: a) mean is larger than the standard deviation b) residual is zero c) mean is zero d) residual is much larger than the rest of the residual values

D) residual is much larger than the rest of the residual values

In a simple linear regression analysis (where y is a dependent and x an independent variable), if the y-intercept is positive, then a) there is a positive correlation between x and y b) if x is increased, y must also increase c) if y is increased, x must also increase d) the estimated regression line intercepts the positive y-axis

D) the estimated regression line intercepts the positive y-axis