Question 1

In a good regression model the residual plot shows

Accepted Answer

A) a cone pattern. 
B) an arched pattern. 
C) a random pattern. 
D) an increasing pattern. 
A) a cone pattern. 
B) an arched pattern. 
C) a random pattern. 
D) an increasing pattern.

Question 2

There is no relationship between variables unless the data points lie in a straight line.

Accepted Answer

A) True 
 B)False

Question 3

Often, a plot of the residuals will highlight any glaring violations of the assumptions.

Accepted Answer

A) True 
 B)False

Question 4

An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas.The resulting regression equation was: Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature.If the temperature averaged 48 degrees during December, what is the forecasted cost of December's electric bill?

Accepted Answer

A) $179.19 
B) $227.19 
C) $157.59 
D) $69.60 
A) $179.19 
B) $227.19 
C) $157.59 
D) $69.60

Question 5

The multiple regression model includes multiple slope coefficients.

Accepted Answer

A) True 
 B)False

Question 6

Table 4.1
SUMMARY OUTPUT
   ANOVA
    
-Consider the output shown in Table 4.1.The R Square value is missing.What is its actual value?

Accepted Answer

A) .9979 
B) .9959 
C) .9989 
D) .9999 
A) .9979 
B) .9959 
C) .9989 
D) .9999

Question 7

In the model Y = β0 + β1X1 + β2X2 + ε, which of these parameters represents random error?

Accepted Answer

A) the X1 
B) the Y 
C) the β1 
D) the ε 
A) the X1 
B) the Y 
C) the β1 
D) the ε

Question 8

The problem of a nonlinear relationship is detected in residual analysis by which of the following?

Accepted Answer

A) a cone pattern 
B) an arched pattern 
C) a random pattern 
D) an increasing pattern 
A) a cone pattern 
B) an arched pattern 
C) a random pattern 
D) an increasing pattern

Question 9

The MBA program surveyed the catastrophe that was his fall 2017 intake.His 257 admitted students had performed miserably and he needed to determine why.He built a regression model to predict their overall class average after their first semester based on these factors that weighed heavily in their admission process: undergraduate GPA, GMAT score, years of professional employment, shoe size, TOEFL score, and 40 yard dash.How many degrees of freedom should the F test numerator have?

Accepted Answer

A) 251 
B) 6 
C) 257 
D) 263 
A) 251 
B) 6 
C) 257 
D) 263

Question 10

A healthcare executive is using regression to predict total revenues.She has decided to include both patient length of stay and insurance type in her model.Insurance type can be grouped into three categories: Government-Funded, Private-Pay, and Other.Her model is

Accepted Answer

A) Y = b0. 
B) Y = b0 + b1 X1. 
C) Y = b0 + b1 X1 + b2 X2. 
D) Y = b0 + b1 X1 + b2 X2 + b3 X3. 
A) Y = b0. 
B) Y = b0 + b1 X1. 
C) Y = b0 + b1 X1 + b2 X2. 
D) Y = b0 + b1 X1 + b2 X2 + b3 X3.

Question 11

If a qualitative variable has three categories, how many dummy variables are needed?

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
E) 4 
A) 0 
B) 1 
C) 2 
D) 3 
E) 4

Question 12

Describe the purpose and structure of a scatter diagram.

Accepted Answer

A scatter diagram is a graphical method

Question 13

When the significance level is small enough in the F-test, we can reject the null hypothesis that there is no linear relationship.

Accepted Answer

A) True 
 B)False

Question 14

An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas.The resulting regression equation was: Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature
If the temperature averaged 75 degrees during December, what is the forecasted cost of December's electric bill?

Accepted Answer

A) $335.94 
B) $227.19 
C) $157.59 
D) $118.44 
A) $335.94 
B) $227.19 
C) $157.59 
D) $118.44

Question 15

A large department store has collected the following monthly data on lost sales revenue due to theft and the number of security guard hours on duty:
   (a)Determine the least squares regression equation.
(b)Using the results of part (a), find the estimated lost sales revenues if the total number of security guard hours is 800.
(c)Calculate the coefficient of correlation.
(d)Calculate the coefficient of determination.

Accepted Answer

(a)least squares equation: Y =

Question 16

What is the formula for r2?

Accepted Answer

SSR / SST

Question 17

Another name for a dummy variable is a binary variable.

Accepted Answer

A) True 
 B)False

Question 18

A large school district is reevaluating its teachers' salaries.They have decided to use regression analysis to predict mean teacher salaries at each elementary school.The researcher would like to examine the significance of the following quadratic model for predicting salary based on years of experience.
Y = β0 + β1X1 + β2X2 + ε where X1 = Yrs Exp and X2 = Yrs Exp2
   (a)What is the adjusted r2?
(b)What is the prediction equation?

Accepted Answer

(a)0.855 (

Question 19

Both the p-value for the F-test and r2 can be interpreted the same with multiple regression models as they are with simple linear models.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true regarding a regression model with multicollinearity, a high r2 value, and a low F-test significance level?

Accepted Answer

A) The model is not a good prediction model. 
B) The high value of r2 is due to the multicollinearity. 
C) The interpretation of the coefficients is valuable. 
D) The significance level tests for the coefficients are not valid. 
A) The model is not a good prediction model. 
B) The high value of r2 is due to the multicollinearity. 
C) The interpretation of the coefficients is valuable. 
D) The significance level tests for the coefficients are not valid.

In a good regression model the residual plot shows

There is no relationship between variables unless the data points lie in a straight line.

Often, a plot of the residuals will highlight any glaring violations of the assumptions.

The multiple regression model includes multiple slope coefficients.

Table 4.1 SUMMARY OUTPUT ANOVA -Consider the output shown in Table 4.1.The R Square value is missing.What is its actual value?

In the model Y = β₀ + β₁X₁ + β₂X₂ + ε, which of these parameters represents random error?

The problem of a nonlinear relationship is detected in residual analysis by which of the following?

A healthcare executive is using regression to predict total revenues.She has decided to include both patient length of stay and insurance type in her model.Insurance type can be grouped into three categories: Government-Funded, Private-Pay, and Other.Her model is

If a qualitative variable has three categories, how many dummy variables are needed?

Describe the purpose and structure of a scatter diagram.

When the significance level is small enough in the F-test, we can reject the null hypothesis that there is no linear relationship.

What is the formula for r²?

Another name for a dummy variable is a binary variable.

Both the p-value for the F-test and r² can be interpreted the same with multiple regression models as they are with simple linear models.

Which of the following is true regarding a regression model with multicollinearity, a high r²value, and a low F-test significance level?

Introduction to Quantitative Analysis

Probability Concepts and Applications

Decision Analysis

Forecasting

Inventory Control Models

Linear Programming Models: Graphical and Computer Methods

Linear Programming Applications

Transportation, Assignment, and Network Models

Integer Programming, Goal Programming, and Nonlinear Programming

Project Management

Waiting Lines and Queuing Theory Models

Simulation Modeling

Markov Analysis

Statistical Quality Control

Analytic Hierarchy Process

Dynamic Programming

Decision Theory and the Normal Distribution

Game Theory

Mathematical Tools: Determinants and Matrices

Calculus-Based Optimization

Linear Programming: The Simplex Method

Transportation, Assignment, and Network Algorithms

Filters

Exam 4: Regression Models

In a good regression model the residual plot shows

There is no relationship between variables unless the data points lie in a straight line.

Often, a plot of the residuals will highlight any glaring violations of the assumptions.

The multiple regression model includes multiple slope coefficients.

Table 4.1 SUMMARY OUTPUT ANOVA -Consider the output shown in Table 4.1.The R Square value is missing.What is its actual value?

In the model Y = β0 + β1X1 + β2X2 + ε, which of these parameters represents random error?

The problem of a nonlinear relationship is detected in residual analysis by which of the following?

A healthcare executive is using regression to predict total revenues.She has decided to include both patient length of stay and insurance type in her model.Insurance type can be grouped into three categories: Government-Funded, Private-Pay, and Other.Her model is

If a qualitative variable has three categories, how many dummy variables are needed?

Describe the purpose and structure of a scatter diagram.

When the significance level is small enough in the F-test, we can reject the null hypothesis that there is no linear relationship.

What is the formula for r2?

Another name for a dummy variable is a binary variable.

Both the p-value for the F-test and r2 can be interpreted the same with multiple regression models as they are with simple linear models.

Which of the following is true regarding a regression model with multicollinearity, a high r2 value, and a low F-test significance level?

Introduction to Quantitative Analysis

Probability Concepts and Applications

Decision Analysis

Forecasting

Inventory Control Models

Linear Programming Models: Graphical and Computer Methods

Linear Programming Applications

Transportation, Assignment, and Network Models

Integer Programming, Goal Programming, and Nonlinear Programming

Project Management

Waiting Lines and Queuing Theory Models

Simulation Modeling

Markov Analysis

Statistical Quality Control

Analytic Hierarchy Process

Dynamic Programming

Decision Theory and the Normal Distribution

Game Theory

Mathematical Tools: Determinants and Matrices

Calculus-Based Optimization

Linear Programming: The Simplex Method

Transportation, Assignment, and Network Algorithms

Filters

In the model Y = β₀ + β₁X₁ + β₂X₂ + ε, which of these parameters represents random error?

What is the formula for r²?

Both the p-value for the F-test and r² can be interpreted the same with multiple regression models as they are with simple linear models.

Which of the following is true regarding a regression model with multicollinearity, a high r²value, and a low F-test significance level?