Question 1

As we increase the number of independent variables in a multiple regression model, the F-statistic will ________ increase.

Accepted Answer

A)  always 
B)  sometimes 
C)  never 
A)  always 
B)  sometimes 
C)  never

Question 2

Which one of the following tools is not used to check the normality of residuals assumption for a multiple regression model?

Accepted Answer

A)  histogram 
B)  stem-and-leaf display 
C)  scatter diagram 
D)  normal plot 
A)  histogram 
B)  stem-and-leaf display 
C)  scatter diagram 
D)  normal plot

Question 3

Cook's distance measure is used to detect if an outlier might influence the estimate of a model's parameter.

Accepted Answer

A) True 
 B)False

Question 4

The ________ term describes the effects on y of all factors other than the independent variables in a multiple regression model.

Accepted Answer

A)  dependent 
B)  t test 
C)  error 
D)  dummy 
A)  dependent 
B)  t test 
C)  error 
D)  dummy

Question 5

In general, a multiple regression model is considered to be desirable if the value of the C statistic is small and the value of C is less than ________.

Accepted Answer

A)  k 
B)  k − 1 
C)  k + 1 
D)  n − k 
A)  k 
B)  k − 1 
C)  k + 1 
D)  n − k

Question 6

In the quadratic regression model y = β0 + β1X1 + β2X12 + ε, the β1 term represents the

Accepted Answer

A)  rate of curvature of the parabola. 
B)  value of Y when X is zero. 
C)  shift parameter of the parabola. 
D)  y-intercept of the parabola. 
A)  rate of curvature of the parabola. 
B)  value of Y when X is zero. 
C)  shift parameter of the parabola. 
D)  y-intercept of the parabola.

Question 7

The primary use of stepwise regression is to identify the most important ________ that should be included in the multiple regression model.

Accepted Answer

A)  independent variables 
B)  dependent variables 
C)  dummy variables 
D)  quadratic variables 
A)  independent variables 
B)  dependent variables 
C)  dummy variables 
D)  quadratic variables

Question 8

Using squared and interaction variables in a multiple regression model results in extreme multicollinearity.

Accepted Answer

A) True 
 B)False

Question 9

The y-intercept, β0, in a multiple regression model represents the estimated value of the ________ variable, when the value of all independent variables are ________.

Accepted Answer

A)  response, one 
B)  dummy, zero 
C)  response, zero 
D)  dummy, one 
A)  response, one 
B)  dummy, zero 
C)  response, zero 
D)  dummy, one

Question 10

If the simple correlation coefficient between two independent variables is greater than .90, then ________ is considered to be severe.

Accepted Answer

A)  autocorrelation 
B)  interaction 
C)  multicollinearity 
D)  coefficient of determination 
A)  autocorrelation 
B)  interaction 
C)  multicollinearity 
D)  coefficient of determination

Question 11

The multiple ________ measures the proportion of the variation in y, the response variable, explained by the multiple regression model or the set of independent variables included in the multiple regression equation.

Accepted Answer

A)  correlation coefficient 
B)  coefficient of determination 
C)  total variation 
D)  standard error 
E)  F test 
A)  correlation coefficient 
B)  coefficient of determination 
C)  total variation 
D)  standard error 
E)  F test

Question 12

In a multiple regression model, we can conclude that multicollinearity exists if the average variance inflation factor (VIF) is substantially greater than ________.

Accepted Answer

A)  100 
B)  5 
C)  10 
D)  1 
A)  100 
B)  5 
C)  10 
D)  1

Question 13

Dummy or indicator variables typically are values of zero or one and are used to model the effects of different levels of ________ variables.

Accepted Answer

A)  qualitative 
B)  quantitative 
C)  ratio 
D)  measured 
A)  qualitative 
B)  quantitative 
C)  ratio 
D)  measured

Question 14

In contrast to stepwise regression, backward elimination is an iterative model selection procedure that begins with all potential independent variables and then attempts to remove them one at a time based on the p-value of the independent variable.

Accepted Answer

A) True 
 B)False

Question 15

In the quadratic regression model y = β0 + β1X1 + β2X12 + ε, if the term β2 is ________ zero, then the parabola opens ________.

Accepted Answer

A)  less than, upward 
B)  greater than, upward 
C)  greater than, either upward or downward 
D)  less than, either upward or downward 
E)  equal to, downward 
A)  less than, upward 
B)  greater than, upward 
C)  greater than, either upward or downward 
D)  less than, either upward or downward 
E)  equal to, downward

Question 16

In multiple regression analysis, the explained sum of squares divided by the total sum of squares yields the ________.

Accepted Answer

A)  standard error 
B)  F statistic 
C)  R2 
D)  adjusted R2 or R−2 
E)  t statistic 
A)  standard error 
B)  F statistic 
C)  R2 
D)  adjusted R2 or R−2 
E)  t statistic

Question 17

Plotting the residuals in a time-ordered sequence will reveal possible violations of the ________ of error terms assumption.

Accepted Answer

A)  normality 
B)  independence 
C)  constant variation 
D)  residual sum 
A)  normality 
B)  independence 
C)  constant variation 
D)  residual sum

Question 18

The error term in the regression model describes the effects of all factors other than the independent variables on y, or the response variable.

Accepted Answer

A) True 
 B)False

Question 19

A very insignificant independent variable (an independent variable that has a very weak relationship with the dependent variable) is added to a multiple regression equation. As a result of this change, the value of the explained variation (SSR) will ________, the value of the multiple coefficient of determination (R2) will ________, and the calculated value of the F statistic will most likely ________.

Accepted Answer

A)  decrease, increase, decrease 
B)  increase, decrease, decrease 
C)  increase, increase, increase 
D)  increase, increase, decrease 
E)  decrease, decrease, decrease 
A)  decrease, increase, decrease 
B)  increase, decrease, decrease 
C)  increase, increase, increase 
D)  increase, increase, decrease 
E)  decrease, decrease, decrease

Question 20

A multiple regression analysis with 20 observations on each of three independent variables and the dependent variable would yield ________ and ________ degrees of freedom, respectively, for regression (explained) and error.

Accepted Answer

A)  3, 17 
B)  3, 16 
C)  4, 16 
D)  3, 19 
E)  3, 20 
A)  3, 17 
B)  3, 16 
C)  4, 16 
D)  3, 19 
E)  3, 20

As we increase the number of independent variables in a multiple regression model, the F-statistic will ________ increase.

Which one of the following tools is not used to check the normality of residuals assumption for a multiple regression model?

Cook's distance measure is used to detect if an outlier might influence the estimate of a model's parameter.

The ________ term describes the effects on y of all factors other than the independent variables in a multiple regression model.

In general, a multiple regression model is considered to be desirable if the value of the C statistic is small and the value of C is less than ________.

In the quadratic regression model y = β₀ + β₁X₁ + β₂X₁² + ε, the β₁ term represents the

The primary use of stepwise regression is to identify the most important ________ that should be included in the multiple regression model.

Using squared and interaction variables in a multiple regression model results in extreme multicollinearity.

The y-intercept, β_0, in a multiple regression model represents the estimated value of the variable, when the value of all independent variables are .

If the simple correlation coefficient between two independent variables is greater than .90, then ________ is considered to be severe.

The multiple ________ measures the proportion of the variation in y, the response variable, explained by the multiple regression model or the set of independent variables included in the multiple regression equation.

In a multiple regression model, we can conclude that multicollinearity exists if the average variance inflation factor (VIF) is substantially greater than ________.

Dummy or indicator variables typically are values of zero or one and are used to model the effects of different levels of ________ variables.

In contrast to stepwise regression, backward elimination is an iterative model selection procedure that begins with all potential independent variables and then attempts to remove them one at a time based on the p-value of the independent variable.

In the quadratic regression model y = β₀ + β₁X₁ + β₂X₁² + ε, if the term β₂ is zero, then the parabola opens .

In multiple regression analysis, the explained sum of squares divided by the total sum of squares yields the ________.

Plotting the residuals in a time-ordered sequence will reveal possible violations of the ________ of error terms assumption.

The error term in the regression model describes the effects of all factors other than the independent variables on y, or the response variable.

A multiple regression analysis with 20 observations on each of three independent variables and the dependent variable would yield and degrees of freedom, respectively, for regression (explained) and error.

An Introduction to Business Statistics and Analytics

Descriptive Statistics and Analytics: Tabular and Graphical Methods

Descriptive Statistics and Analytics: Numerical Methods

Probability and Probability Models

Predictive Analytics I: Trees, K-Nearest Neighbors, Naive Bayes,

Discrete Random Variables

Continuous Random Variables

Sampling Distributions

Confidence Intervals

Hypothesis Testing

Statistical Inferences Based on Two Samples

Experimental Design and Analysis of Variance

Chi-Square Tests

Simple Linear Regression Analysis

Predictive Analytics Ii: Logistic Regression, Discriminate Analysis,

Time Series Forecasting and Index Numbers

Nonparametric Methods

Decision Theory

Filters

Exam 15: Multiple Regression and Model Building

As we increase the number of independent variables in a multiple regression model, the F-statistic will ________ increase.

Which one of the following tools is not used to check the normality of residuals assumption for a multiple regression model?

Cook's distance measure is used to detect if an outlier might influence the estimate of a model's parameter.

The ________ term describes the effects on y of all factors other than the independent variables in a multiple regression model.

In general, a multiple regression model is considered to be desirable if the value of the C statistic is small and the value of C is less than ________.

In the quadratic regression model y = β0 + β1X1 + β2X12 + ε, the β1 term represents the

The primary use of stepwise regression is to identify the most important ________ that should be included in the multiple regression model.

Using squared and interaction variables in a multiple regression model results in extreme multicollinearity.

The y-intercept, β0, in a multiple regression model represents the estimated value of the ________ variable, when the value of all independent variables are ________.

If the simple correlation coefficient between two independent variables is greater than .90, then ________ is considered to be severe.

The multiple ________ measures the proportion of the variation in y, the response variable, explained by the multiple regression model or the set of independent variables included in the multiple regression equation.

In a multiple regression model, we can conclude that multicollinearity exists if the average variance inflation factor (VIF) is substantially greater than ________.

Dummy or indicator variables typically are values of zero or one and are used to model the effects of different levels of ________ variables.

In contrast to stepwise regression, backward elimination is an iterative model selection procedure that begins with all potential independent variables and then attempts to remove them one at a time based on the p-value of the independent variable.

In the quadratic regression model y = β0 + β1X1 + β2X12 + ε, if the term β2 is ________ zero, then the parabola opens ________.

In multiple regression analysis, the explained sum of squares divided by the total sum of squares yields the ________.

Plotting the residuals in a time-ordered sequence will reveal possible violations of the ________ of error terms assumption.

The error term in the regression model describes the effects of all factors other than the independent variables on y, or the response variable.

A multiple regression analysis with 20 observations on each of three independent variables and the dependent variable would yield ________ and ________ degrees of freedom, respectively, for regression (explained) and error.

An Introduction to Business Statistics and Analytics

Descriptive Statistics and Analytics: Tabular and Graphical Methods

Descriptive Statistics and Analytics: Numerical Methods

Probability and Probability Models

Predictive Analytics I: Trees, K-Nearest Neighbors, Naive Bayes,

Discrete Random Variables

Continuous Random Variables

Sampling Distributions

Confidence Intervals

Hypothesis Testing

Statistical Inferences Based on Two Samples

Experimental Design and Analysis of Variance

Chi-Square Tests

Simple Linear Regression Analysis

Predictive Analytics Ii: Logistic Regression, Discriminate Analysis,

Time Series Forecasting and Index Numbers

Nonparametric Methods

Decision Theory

Filters

In the quadratic regression model y = β₀ + β₁X₁ + β₂X₁² + ε, the β₁ term represents the

The y-intercept, β_0, in a multiple regression model represents the estimated value of the variable, when the value of all independent variables are .

In the quadratic regression model y = β₀ + β₁X₁ + β₂X₁² + ε, if the term β₂ is zero, then the parabola opens .

A multiple regression analysis with 20 observations on each of three independent variables and the dependent variable would yield and degrees of freedom, respectively, for regression (explained) and error.