STUDY.COM BUS 212-CHAPTER 14
What is the relationship between two sets of variables used to describe or predict information?
Correlation
Which of the following is the outlier?
Sam likes red
What does normality mean in analyzing residuals?
The residuals are normally distributed around the line of best fit.
What does homoscedasticity imply?
All values of the independent variable have the same variance around the regression line.
What do we call a straight line that attempts to predict the relationship between two points?
Regression line
What is a straight line that attempts to predict the relationship between two points, also known as a trend line or line of best fit?
Regression line
Where does the term 'zero-one indicator variable' come from?
This reflects the use of 0 and 1 as the replacement values used in a dummy indicator variable.
What is the purpose for using a model in regression analysis?
To best fit the data.
Regression analysis relates what to each other?
Variables
If a regression plot looks like this, what conclusion can be drawn regarding the relationship between the variables?
There is no relationship at all.
What precondition is required of the variables used in regression analysis?
They must be numeric or measured values.
Which of the following letters represents the DEPENDENT variable in a regression equation used as part of regression analysis in business?
Y
What do we call a prediction where a variable (y) is dependent on a second variable (x) based on the regression equation of a given set of data?
Linear regression
Multiple regression analysis refers to the process whereby...
Multiple independent variables are used to estimate one dependent variable
In multiple regression analysis, collinearity refers to what situation?
Two independent variables have high correlation themselves
Which of the following can you do once you have a good model?
You can make predictions.
What is a graph of ordered pairs showing a relationship between two sets of data?
Scatterplot
In multiple regression, the independent variables that are most likely to be correlated with the dependent variable have what attribute?
A small p-value
What does statistical independence mean in analyzing residuals?
There is no correlation between residuals within the data set.
A scientist is graphing data points from an experiment and concludes that the data set is linear. Which of these statements BEST explains why they drew this conclusion?
Because the relationship between the dependent and independent variables is linear.
What is meant by coding for categorical variables?
Creating a dummy numeric variable
In multiple regression analysis, what is one of the pre-conditions for the input data samples?
Each observation must have a value for all of the independent variables being measured
In this regression, the data points marked with the magenta stars are:
Outliers
What does the term 'correlation' mean as a part of regression analysis in business?
The degree to which two things change together
Which of the following is not a categorical variable?
Height
The linear model uses what to fit the data?
Linear equation
What do we call two sets of variables that can change and are compared to find relationships?
Bivariate data
Which of the following is NOT an assumption of linear regression?
Uniformity
What is the relationship between two sets of variables used to describe or predict information?
Correlations
What does the term 'inverse correlation' mean as a part of regression analysis in business?
When one independent variable rises, the dependent variable drops
Find the regression line equation using the formulas for the following data set: (1, 3) (2, 4) (3, 5)
y = x + 2
A line of regression for a set of data passes through points (1,4) and (5,12). What is the equation for this regression line?
y = 2x + 2
In a regression, the _____ is the central variable that everything else is being compared to.
Dependent
Which statement BEST describes the purpose of a regression analysis?
A regression analysis helps organizations cut through extra data and irrelevant data in order to find the real relationship between two things.
What definition best defines regression analysis as it is used in business?
A statistical tool that attempts to identify correlation between independent variables with a single dependent variable
If a political campaign wanted to buy a television commercial that targeted a specific segment of the population, a regression analysis could answer all of these questions EXCEPT:
How many people in voted in the last election?
Which of the following problems could be studied through the use of regression analysis?
How the speeds of runners on a track team relate to how long they each train
Statistical control refers to what process?
In multiple regression, estimating each independent variable by setting the other independent variables to a constant
Which of the following is NOT a business-related question regression analysis could help answer?
Regression analysis could help provide answers to all of these questions.
What data attribute is equivalent to running regression with a single dummy variable as the independent variable?
The average
