Bus stats 2 chap 13, 14

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a logarithmic transformation may be applied to both positive and negative numbers

false

if we reject Ho:B1=B2=0 using the F-test, then we should conclude that both slopes are different from zero

false

the interaction between two independent variables can be examined by including a new variable, which is the sum of the two independent variables, in the regression model

false

the model y=Bo +B1x1+B2x2+E is a second-order regression model

false

the regression model y=Bo+B1x1+B2x2+B3x3+E is a third order model

false

if each pair of independent variable is weakly correlated, there is no problem of multicollinearity

true

in a multiple regression analysis with N observation and k independent variable, the degrees of freedom for the residual error (SSE) is given by (N-k-1)

true

in the model y=Bo+B1x1+B2x2+B3x3+E, y is the dependent variable

true

qualitative data can be incorporated into linear regression models using indicator variables

true

the F test is used to determine whether the overall regression model is significant

true

in multiple regression analysis, qualitative variables are sometimes referred to as __________. a) dummy variables b) quantitative variables c) dependent variables d) performance variables e) cardinal variables

a

which of the following iterative search procedures for model-building in a multiple regression analysis starts with all independent variables in the model and then drops non-significant independent variables is a step-by-step manner? a) backward elimination b) stepwise regression c) forward selection d) al possible regressions e) backward selection

a

a market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighborhood (urban, suburban, and rural). the response variable in this model is __________ a) family size b) expenditures on groceries c) household income d) suburban e) household neighborhood

b

multiple linear regression models can handle certain nonlinear relationships by __________. a) biasing the sample b) recoding or transforming variables c) adjusting the resultant ANOVA table d) adjusting the observed t and F values e) performing nonlinear regression

b or e


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