BA 322 Quiz 4
In a regression analysis, if SSE = 200 and SSR = 300, then the coefficient of determination is _____.
.600
The correct relationship between SST, SSR, and SSE is given by _____.
SSR = SST - SSE
In regression analysis, which of the following is NOT a required assumption about the error term ε?
The values of the error term are dependent.
A regression analysis between sales (in $1000s) and price (in dollars) resulted in the following equation: = 50,000 − 8x
$1 in price is associated with a decrease of $8,000 in sales
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183 Refer to Exhibit 15-5. The estimated regression equation is _____. Group of answer choices
$1 in price is associated with a decrease of $8,000 in sales
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183 Refer to Exhibit 15-5. The interpretation of the coefficient onx1is that _____.
a one-unit change in x1 will lead to a 25.625-unit increase in y when all other variables are held constant
In simple linear regression, r2 is the _____.
coefficient of determination
The proportion of the variation in the dependent variable y that is explained by the estimated regression equation is measured by the _____.
coefficient of determination
Compared to the prediction interval estimate for a particular value of y (in a linear regression model), the confidence interval estimate for an average value of y will be _____.
narrower
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
Regression analysis is a statistical procedure for developing a mathematical equation that describes how _____.
one dependent and one or more independent variables are related
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
In a simple regression analysis (where y is a dependent and x an independent variable), if the slope is positive, then it must be true that _____.
there is a positive correlation between x and y
A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation: = 50,000 + 6x The above equation implies that an increase of _____.
$1 in advertising is associated with an increase of $6,000 in sales
If the correlation coefficient is .8, then the percentage of variation in the dependent variable explained by the estimated regression equation is _____.
64%
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183
= 145.321 + 25.625x1 - 5.720x2 + 0.823x3
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183 Refer to Exhibit 15-5. The estimated regression equation is _____.
= 145.321 + 25.625x1 - 5.720x2 + 0.823x3
The interval estimate of the mean value of y for a given value of x is the _____.
confidence interval
A measure of the strength of the relationship between two variables is the _____.
correlation coefficient
In regression analysis, the response variable is the _____.
dependent variable
In regression analysis, the variable that is being predicted is the _____.
dependent variable
Exhibit 15-4 a.y = β0 + β1x1 + β2x2 + εb.E(y) = β0 + β1x1c. = b0 + b1 x1 + b2 x2d.E(y) = β0 + β1x1 + β2x2
equation c
A multiple regression model has the form = 7 + 2 x1 + 9 x2 As x1 increases by 1 unit (holding x2 constant), is expected to _____.
increase by 2 units
In a regression analysis, the variable that is used to predict the dependent variable _____.
is the independent variable
SSE can never be _____.
larger than SST
Larger values of r2 imply that the observations are more closely grouped about the _____.
least squares line
A least squares regression line _____.
may be used to predict a value of y if the corresponding x value is given
A multiple regression model has _____.
more than one independent variable
If the correlation coefficient is a positive value, then the slope of the regression line _____.
must also be positive
The equation that describes how the dependent variable (y) is related to the independent variable (x) is called _____.
regression model
The difference between the observed value of the dependent variable and the value predicted by using the estimated regression equation is called _____.
residual
If there is a very strong negative correlation between two variables, then the correlation coefficient must be _____.
very close to -1
In regression analysis, the independent variable is typically plotted on the _____.
x-axis of a scatter diagram