Question 1

The regression equation   = 3,698 + 2,538X gives an R2 value of 0.2645.This means that ________.

Accepted Answer

A) X and Y have a very high level of correlation 
B) the percentage of variation in Y that is attributed to random factors is 26.45% 
C) 26.45% of the variation in Y can be explained by X 
D) a one-percent change in Y will lead to a 26.45% change in X 
A) X and Y have a very high level of correlation 
B) the percentage of variation in Y that is attributed to random factors is 26.45% 
C) 26.45% of the variation in Y can be explained by X 
D) a one-percent change in Y will lead to a 26.45% change in X

Question 2

If the Bonferroni Criterion (Cp)is much greater than 1,then ________.

Accepted Answer

A) they are good models to consider 
B) there is a substantial bias 
C) the models must be recalculated 
D) none of the above 
A) they are good models to consider 
B) there is a substantial bias 
C) the models must be recalculated 
D) none of the above

Question 3

Which of the following is an automated method that can be used to find the set of variables with the largest Adjusted R2 in a multiple regression model?

Accepted Answer

A) best-subsets regression 
B) ANOVA 
C) the method of least squares 
D) standardized residuals 
A) best-subsets regression 
B) ANOVA 
C) the method of least squares 
D) standardized residuals

Question 4

Heteroscedasticity means that the variation about the regression line is constant for all values of the dependent variable.

Accepted Answer

A) True 
 B)False

Question 5

In regression models based on time-series data,the dependent variable is time or some function of time and the focus is on predicting the future.

Accepted Answer

A) True 
 B)False

Question 6

What is meant by an underspecified model?

Accepted Answer

A) a model that has more independent variables than dependent variables 
B) a model that does not have relevant predictors 
C) a model that has only one dependent variable 
D) a model that has a low R2 value 
A) a model that has more independent variables than dependent variables 
B) a model that does not have relevant predictors 
C) a model that has only one dependent variable 
D) a model that has a low R2 value

Question 7

In conducting a multiple linear regression analysis,an R2 value of 0.46 is obtained.An extra variable is added and R2 improves to 0.52.The analyst conducting the regression analysis concludes that this is a meaningful increase in R2 and determines that the latter model is an appropriate model to be used.Is this decision justified?

Accepted Answer

No,this decision is not justified.When c

Question 8

R Square (R2)is also known as the ________.

Accepted Answer

A) sample correlation coefficient 
B) coefficient of regression 
C) test statistic 
D) coefficient of determination 
A) sample correlation coefficient 
B) coefficient of regression 
C) test statistic 
D) coefficient of determination

Question 9

Curvilinear regression models are often used in forecasting when ________.

Accepted Answer

A) dummy variables need to be used 
B) the number of independent variables is high 
C) the independent variable is time 
D) the error term is approximately equal to zero 
A) dummy variables need to be used 
B) the number of independent variables is high 
C) the independent variable is time 
D) the error term is approximately equal to zero

Question 10

If the stock return is the same as the market return,the slope of the regression line is ________.

Accepted Answer

A) greater than one 
B) equal to one 
C) lesser than one 
D) equal to zero 
A) greater than one 
B) equal to one 
C) lesser than one 
D) equal to zero

Question 11

The t-test for the slope of the regression line is calculated by ________.

Accepted Answer

A) b1-0/standard error 
B) b2/standard error 
C) b1-b2/standard error 
D) standard error/b1+b2 
A) b1-0/standard error 
B) b2/standard error 
C) b1-b2/standard error 
D) standard error/b1+b2

Question 12

The risk associated with an individual stock can be measured in two ways: symmetric risk and asymmetric risk.

Accepted Answer

A) True 
 B)False

Question 13

The Cp for a fully specified multiple regression model will always be equal to ________.

Accepted Answer

A) k - 1 
B) k 
C) k + 1 
D) 0 
A) k - 1 
B) k 
C) k + 1 
D) 0

Question 14

Which of the following correctly describes multicollinearity?

Accepted Answer

A) A condition occurring when two or more independent variables in the same regression model can predict each other better than the dependent variable. 
B) A condition occurring when the standard residual in a regression model takes a zero value. 
C) A condition occurring when the value of the regression coefficient is the same for two or more dependent variables. 
D) A condition occurring when two or more dependent variables in the same regression model have a correlation coefficient equal to zero. 
A) A condition occurring when two or more independent variables in the same regression model can predict each other better than the dependent variable. 
B) A condition occurring when the standard residual in a regression model takes a zero value. 
C) A condition occurring when the value of the regression coefficient is the same for two or more dependent variables. 
D) A condition occurring when two or more dependent variables in the same regression model have a correlation coefficient equal to zero.

Question 15

In a simple regression model Y = ß0 + ß1X + ε,ß1 represents the ________.

Accepted Answer

A) slope of the regression line 
B) intercept 
C) error term 
D) mean value of X 
A) slope of the regression line 
B) intercept 
C) error term 
D) mean value of X

Question 16

Multicollinearity is a condition occurring when two or more independent variables in the same regression model can predict each other better than the dependent variable.

Accepted Answer

A) True 
 B)False

Question 17

The specific risk associated with a stock is characterized by a measure called beta.

Accepted Answer

A) True 
 B)False

Question 18

An example of coding a categorical variable would be to code "No" as 0 and "Yes" as 1.

Accepted Answer

A) True 
 B)False

Question 19

When testing the significance of the regression,if the value of Significance F is ________,the null hypothesis is rejected.

Accepted Answer

A) less than the p-value 
B) more than the level of significance 
C) more than the p-value 
D) less than the level of significance 
A) less than the p-value 
B) more than the level of significance 
C) more than the p-value 
D) less than the level of significance

Question 20

Regression models that are extrapolated outside the ranges covered by the observations are still valid.

Accepted Answer

A) True 
 B)False

The regression equation = 3,698 + 2,538X gives an R²value of 0.2645.This means that ________.

If the Bonferroni Criterion (Cp)is much greater than 1,then ________.

Which of the following is an automated method that can be used to find the set of variables with the largest Adjusted R² in a multiple regression model?

Heteroscedasticity means that the variation about the regression line is constant for all values of the dependent variable.

In regression models based on time-series data,the dependent variable is time or some function of time and the focus is on predicting the future.

What is meant by an underspecified model?

R Square (R²)is also known as the ________.

Curvilinear regression models are often used in forecasting when ________.

If the stock return is the same as the market return,the slope of the regression line is ________.

The t-test for the slope of the regression line is calculated by ________.

The risk associated with an individual stock can be measured in two ways: symmetric risk and asymmetric risk.

The Cp for a fully specified multiple regression model will always be equal to ________.

Which of the following correctly describes multicollinearity?

In a simple regression model Y = ß₀+ ß₁X + ε,ß₁ represents the ________.

Multicollinearity is a condition occurring when two or more independent variables in the same regression model can predict each other better than the dependent variable.

The specific risk associated with a stock is characterized by a measure called beta.

An example of coding a categorical variable would be to code "No" as 0 and "Yes" as 1.

When testing the significance of the regression,if the value of Significance F is ________,the null hypothesis is rejected.

Regression models that are extrapolated outside the ranges covered by the observations are still valid.

Data and Business Decisions

Descriptive Statistics and Data Analysis

Probability Concepts and Distributions

Sampling and Estimation

Hypothesis Testing and Statistical Inference

Forecasting

Introduction to Statistical Quality Control

Building and Using Decision Models

Decision Models With Uncertainty and Risk

Decisions, uncertainty, and Risk

Queues and Process Simulation Modeling

Linear Optimization

Integer, nonlinear, and Advanced Optimization Methods

Filters

Exam 6: Regression Analysis

The regression equation = 3,698 + 2,538X gives an R2 value of 0.2645.This means that ________.

If the Bonferroni Criterion (Cp)is much greater than 1,then ________.

Which of the following is an automated method that can be used to find the set of variables with the largest Adjusted R2 in a multiple regression model?

Heteroscedasticity means that the variation about the regression line is constant for all values of the dependent variable.

In regression models based on time-series data,the dependent variable is time or some function of time and the focus is on predicting the future.

What is meant by an underspecified model?

R Square (R2)is also known as the ________.

Curvilinear regression models are often used in forecasting when ________.

If the stock return is the same as the market return,the slope of the regression line is ________.

The t-test for the slope of the regression line is calculated by ________.

The risk associated with an individual stock can be measured in two ways: symmetric risk and asymmetric risk.

The Cp for a fully specified multiple regression model will always be equal to ________.

Which of the following correctly describes multicollinearity?

In a simple regression model Y = ß0 + ß1X + ε,ß1 represents the ________.

Multicollinearity is a condition occurring when two or more independent variables in the same regression model can predict each other better than the dependent variable.

The specific risk associated with a stock is characterized by a measure called beta.

An example of coding a categorical variable would be to code "No" as 0 and "Yes" as 1.

When testing the significance of the regression,if the value of Significance F is ________,the null hypothesis is rejected.

Regression models that are extrapolated outside the ranges covered by the observations are still valid.

Data and Business Decisions

Descriptive Statistics and Data Analysis

Probability Concepts and Distributions

Sampling and Estimation

Hypothesis Testing and Statistical Inference

Forecasting

Introduction to Statistical Quality Control

Building and Using Decision Models

Decision Models With Uncertainty and Risk

Decisions, uncertainty, and Risk

Queues and Process Simulation Modeling

Linear Optimization

Integer, nonlinear, and Advanced Optimization Methods

Filters

The regression equation = 3,698 + 2,538X gives an R²value of 0.2645.This means that ________.

Which of the following is an automated method that can be used to find the set of variables with the largest Adjusted R² in a multiple regression model?

R Square (R²)is also known as the ________.

In a simple regression model Y = ß₀+ ß₁X + ε,ß₁ represents the ________.