Question 1

There is substantial bias in the estimates of the responses if the Bonferroni criterion is ________.

Accepted Answer

A) lower than k + 1 
B) equal to k 
C) greater than k + 1 
D) equal to k + 1 
A) lower than k + 1 
B) equal to k 
C) greater than k + 1 
D) equal to k + 1

Question 2

In least-squares regression,the best-fitting line minimizes ________.

Accepted Answer

A) the sum of the squares of the dependent variables 
B) the squares of the slope and intercept term 
C) the squares of the mean values of X and Y 
D) the sum of squares of the observed errors 
A) the sum of the squares of the dependent variables 
B) the squares of the slope and intercept term 
C) the squares of the mean values of X and Y 
D) the sum of squares of the observed errors

Question 3

When adjusted R square increase significantly from the original linear model and residual plots show more randomness,this is an indication of a ________.

Accepted Answer

A) multiple linear regression 
B) stepwise regression 
C) best subsets regression 
D) curvilinear regression 
A) multiple linear regression 
B) stepwise regression 
C) best subsets regression 
D) curvilinear regression

Question 4

What is meant by interaction in a multiple regression?

Accepted Answer

A) The coefficient of an independent variable depends on the value of the dummy variable. 
B) the addition of independent variables in order to increase the value of the Adjusted R2 
C) the process by which insignificant independent variables are removed sequentially in a model 
D) the correlation between the dependent variables in a model 
A) The coefficient of an independent variable depends on the value of the dummy variable. 
B) the addition of independent variables in order to increase the value of the Adjusted R2 
C) the process by which insignificant independent variables are removed sequentially in a model 
D) the correlation between the dependent variables in a model

Question 5

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

Accepted Answer

A) slope of the regression line 
B) independent variable 
C) intercept 
D) dependent variable 
A) slope of the regression line 
B) independent variable 
C) intercept 
D) dependent variable

Question 6

The number of dummy variables to be added to the regression equation when a categorical variable has k levels is equal to ________.

Accepted Answer

A) 1/ k - 1 
B) k - 1 
C) k2 
D) k/1 
A) 1/ k - 1 
B) k - 1 
C) k2 
D) k/1

Question 7

In conducting the initial assessment of the variables for a simple linear regression analysis,it was noticed that one of the variables is not normally distributed.The variable has a high level of positive skewness.Should the regression analysis be continued? Why or why not?

Accepted Answer

The linear regression will not necessari

Question 8

If the variance inflation factor is equal to one,________.

Accepted Answer

A) the independent variables are not correlated 
B) the value of Multiple R will also be one 
C) the data exhibits autocorrelation 
D) the p-values are most likely inflated 
A) the independent variables are not correlated 
B) the value of Multiple R will also be one 
C) the data exhibits autocorrelation 
D) the p-values are most likely inflated

Question 9

Insignificant variables in a multiple regression model can be removed using ________.

Accepted Answer

A) step-wise regression 
B) dummy variables 
C) the Durbin-Watson statistic 
D) linear extrapolation 
A) step-wise regression 
B) dummy variables 
C) the Durbin-Watson statistic 
D) linear extrapolation

Question 10

Statistical hypothesis tests are based on all of the following assumptions about the data except ________.

Accepted Answer

A) linearity 
B) normality of errors 
C) dependence of errors 
D) homoscedasticity 
A) linearity 
B) normality of errors 
C) dependence of errors 
D) homoscedasticity

Question 11

If a variable is removed from the regression model when the t-statistic is lesser than 1,________.

Accepted Answer

A) the standard error will decrease 
B) the p-value will increase 
C) the Adjusted R2 will decrease 
D) the Multiple R will increase 
A) the standard error will decrease 
B) the p-value will increase 
C) the Adjusted R2 will decrease 
D) the Multiple R will increase

Question 12

Systemic risks associated with stock price fluctuations are measured with beta.Why is beta an important technical indicator of systemic risks and how is it obtained?

Accepted Answer

A beta value equal to 1.0 means that the

Question 13

Multiple R and R Square indicate the strength of association between the dependent and independent variables.

Accepted Answer

A) True 
 B)False

Question 14

________ is a regression model that involves one dependent variable and one independent variable.

Accepted Answer

A) Multiple regression 
B) Simple regression 
C) Single regression 
D) Step-wise regression 
A) Multiple regression 
B) Simple regression 
C) Single regression 
D) Step-wise regression

Question 15

Stepwise regression carried out by adding variables to a multiple regression model until no additional model makes a significant contribution is called ________.

Accepted Answer

A) forward selection 
B) backward elimination 
C) general stepwise 
D) parsimony 
A) forward selection 
B) backward elimination 
C) general stepwise 
D) parsimony

Question 16

Regression analysis is used to build statistical models that characterize relationships among a dependent variable and one or more independent variables.

Accepted Answer

A) True 
 B)False

Question 17

When a categorical variable has 5 levels,________ dummy variables need to be added to the model.

Accepted Answer

A) 5 
B) 0 
C) 4 
D) 2 
A) 5 
B) 0 
C) 4 
D) 2

Question 18

The standard error of the estimate   is calculated by ________.

Accepted Answer

A)    =   
B)    =   
C)    =   
D)    =   
A)    =   
B)    =   
C)    =   
D)    =

Question 19

If the data are clustered close to the regression line ________.

Accepted Answer

A) the correlation coefficient is likely to be 0 
B) the standard error is likely to be small 
C) the intercept term is likely to be large 
D) the slope is likely to be negative 
A) the correlation coefficient is likely to be 0 
B) the standard error is likely to be small 
C) the intercept term is likely to be large 
D) the slope is likely to be negative

Question 20

In conducting a simple linear regression analysis,an R2 of 0.72 is obtained.This results in an F-value of 1027 and a p-value that is less than 0.0001.During a final check of the model,it is noticed that the distribution of the residuals is highly positively skewed.What does this mean?

Accepted Answer

It means that though the linear model ex

There is substantial bias in the estimates of the responses if the Bonferroni criterion is ________.

In least-squares regression,the best-fitting line minimizes ________.

When adjusted R square increase significantly from the original linear model and residual plots show more randomness,this is an indication of a ________.

What is meant by interaction in a multiple regression?

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

The number of dummy variables to be added to the regression equation when a categorical variable has k levels is equal to ________.

In conducting the initial assessment of the variables for a simple linear regression analysis,it was noticed that one of the variables is not normally distributed.The variable has a high level of positive skewness.Should the regression analysis be continued? Why or why not?

If the variance inflation factor is equal to one,________.

Insignificant variables in a multiple regression model can be removed using ________.

Statistical hypothesis tests are based on all of the following assumptions about the data except ________.

If a variable is removed from the regression model when the t-statistic is lesser than 1,________.

Systemic risks associated with stock price fluctuations are measured with beta.Why is beta an important technical indicator of systemic risks and how is it obtained?

Multiple R and R Square indicate the strength of association between the dependent and independent variables.

________ is a regression model that involves one dependent variable and one independent variable.

Stepwise regression carried out by adding variables to a multiple regression model until no additional model makes a significant contribution is called ________.

Regression analysis is used to build statistical models that characterize relationships among a dependent variable and one or more independent variables.

When a categorical variable has 5 levels,________ dummy variables need to be added to the model.

The standard error of the estimate is calculated by ________.

If the data are clustered close to the regression line ________.

In conducting a simple linear regression analysis,an R² of 0.72 is obtained.This results in an F-value of 1027 and a p-value that is less than 0.0001.During a final check of the model,it is noticed that the distribution of the residuals is highly positively skewed.What does this mean?

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

There is substantial bias in the estimates of the responses if the Bonferroni criterion is ________.

In least-squares regression,the best-fitting line minimizes ________.

When adjusted R square increase significantly from the original linear model and residual plots show more randomness,this is an indication of a ________.

What is meant by interaction in a multiple regression?

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

The number of dummy variables to be added to the regression equation when a categorical variable has k levels is equal to ________.

In conducting the initial assessment of the variables for a simple linear regression analysis,it was noticed that one of the variables is not normally distributed.The variable has a high level of positive skewness.Should the regression analysis be continued? Why or why not?

If the variance inflation factor is equal to one,________.

Insignificant variables in a multiple regression model can be removed using ________.

Statistical hypothesis tests are based on all of the following assumptions about the data except ________.

If a variable is removed from the regression model when the t-statistic is lesser than 1,________.

Systemic risks associated with stock price fluctuations are measured with beta.Why is beta an important technical indicator of systemic risks and how is it obtained?

Multiple R and R Square indicate the strength of association between the dependent and independent variables.

________ is a regression model that involves one dependent variable and one independent variable.

Stepwise regression carried out by adding variables to a multiple regression model until no additional model makes a significant contribution is called ________.

Regression analysis is used to build statistical models that characterize relationships among a dependent variable and one or more independent variables.

When a categorical variable has 5 levels,________ dummy variables need to be added to the model.

The standard error of the estimate is calculated by ________.

If the data are clustered close to the regression line ________.

In conducting a simple linear regression analysis,an R2 of 0.72 is obtained.This results in an F-value of 1027 and a p-value that is less than 0.0001.During a final check of the model,it is noticed that the distribution of the residuals is highly positively skewed.What does this mean?

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

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

In conducting a simple linear regression analysis,an R² of 0.72 is obtained.This results in an F-value of 1027 and a p-value that is less than 0.0001.During a final check of the model,it is noticed that the distribution of the residuals is highly positively skewed.What does this mean?