Question 1

Even when an unimportant variable is added to a regression model, the explained variation will increase.

Accepted Answer

A) True 
 B)False

Question 2

If we are testing the significance of the independent variable X1 and we reject the null hypothesis H0: β1 = 0, we conclude that

Accepted Answer

A)  X1 is significantly related to y. 
B)  X1 is not significantly related to y. 
C)  X1 is an unimportant independent variable. 
D)  β1 is significantly related to the dependent variable y. 
A)  X1 is significantly related to y. 
B)  X1 is not significantly related to y. 
C)  X1 is an unimportant independent variable. 
D)  β1 is significantly related to the dependent variable y.

Question 3

The variance inflation factor (VIF) measures the relationship between the dependent variable and the rest of the independent variables in the regression model.

Accepted Answer

A) True 
 B)False

Question 4

When using a multiple regression model, we assume that error terms, or residuals, are distributed according to a(n) ________ distribution.

Accepted Answer

A)  binomial 
B)  normal 
C)  exponential 
D)  Poisson 
A)  binomial 
B)  normal 
C)  exponential 
D)  Poisson

Question 5

DFBETAs and DFFITS are statistics used to determine an outlier.

Accepted Answer

A) True 
 B)False

Question 6

If it is desired to include marital status in a multiple regression model by using the categories single, married, separated, divorced, and widowed, what will be the effect on the model?

Accepted Answer

A)  One more independent variable will be included. 
B)  Two more independent variables will be included. 
C)  Three more independent variables will be included. 
D)  Four more independent variables will be included. 
E)  Five more independent variables will be included. 
A)  One more independent variable will be included. 
B)  Two more independent variables will be included. 
C)  Three more independent variables will be included. 
D)  Four more independent variables will be included. 
E)  Five more independent variables will be included.

Question 7

In a multiple regression mode, if the largest variance inflation factor (VIF) is 21.6, then it can be concluded that there are indications of multicollinearity.

Accepted Answer

A) True 
 B)False

Question 8

The effects of different levels of qualitative independent variables are described using ________ variables.

Accepted Answer

A)  dependent 
B)  response 
C)  dummy 
D)  quantitative 
A)  dependent 
B)  response 
C)  dummy 
D)  quantitative

Question 9

An application of the multiple regression model generated the following results involving the F test of the overall regression model: p-value = .0012, R2 = .67, and s = .076. Thus, the null hypothesis, which states that none of the independent variables are significantly related to the dependent variable, should be rejected at the .05 level of significance.

Accepted Answer

A) True 
 B)False

Question 10

The critical value for DFBETAs statistics is 1.

Accepted Answer

A) True 
 B)False

Question 11

Significant ________ may exist when the overall F statistic is significant and the individual t-statistics for all independent variables are insignificant.

Accepted Answer

A)  autocorrelation 
B)  independence 
C)  multicollinearity 
D)  outliers 
A)  autocorrelation 
B)  independence 
C)  multicollinearity 
D)  outliers

Question 12

In a multiple regression analysis, the current model has three independent variables. The analyst decides to add another (fourth) independent variable while retaining the other three independent variables. As a result of this addition, the value of MSE will ________ decrease.

Accepted Answer

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

Question 13

For the same point estimate of the dependent variable and the same level of significance, the confidence interval is always wider than the corresponding prediction interval.

Accepted Answer

A) True 
 B)False

Question 14

In a regression model, a value of the error term depends upon other values of the error term.

Accepted Answer

A) True 
 B)False

Question 15

The graph of the prediction equation obtained from the model y = β0 + β1X1 + β2X2 + ε is a(n) ________.

Accepted Answer

A)  line 
B)  plane 
C)  parabola 
D)  exponential curve 
A)  line 
B)  plane 
C)  parabola 
D)  exponential curve

Question 16

If a particular multiple regression model has a small value of the C statistic and C for this model is less than k+1, where k is the number of independent variables in the model, then the model should be considered biased and therefore undesirable.

Accepted Answer

A) True 
 B)False

Question 17

In a regression model, at any given combination of values of the independent variables, the population of potential error terms is assumed to have an F distribution.

Accepted Answer

A) True 
 B)False

Question 18

For a given multiple regression model with three independent variables, the value of the adjusted multiple coefficient of determination is________ less than R2.

Accepted Answer

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

Question 19

Which one of the following is not an assumption about the residuals in a regression model?

Accepted Answer

A)  constant variance 
B)  independence 
C)  normality 
D)  variance of zero 
E)  mean of zero 
A)  constant variance 
B)  independence 
C)  normality 
D)  variance of zero 
E)  mean of zero

Question 20

In the quadratic regression model y = β0 + β1X1 + β2X12 + ε, the β2 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.

Even when an unimportant variable is added to a regression model, the explained variation will increase.

If we are testing the significance of the independent variable X₁ and we reject the null hypothesis H₀: β₁ = 0, we conclude that

The variance inflation factor (VIF) measures the relationship between the dependent variable and the rest of the independent variables in the regression model.

When using a multiple regression model, we assume that error terms, or residuals, are distributed according to a(n) ________ distribution.

DFBETAs and DFFITS are statistics used to determine an outlier.

If it is desired to include marital status in a multiple regression model by using the categories single, married, separated, divorced, and widowed, what will be the effect on the model?

In a multiple regression mode, if the largest variance inflation factor (VIF) is 21.6, then it can be concluded that there are indications of multicollinearity.

The effects of different levels of qualitative independent variables are described using ________ variables.

The critical value for DFBETAs statistics is 1.

Significant ________ may exist when the overall F statistic is significant and the individual t-statistics for all independent variables are insignificant.

In a multiple regression analysis, the current model has three independent variables. The analyst decides to add another (fourth) independent variable while retaining the other three independent variables. As a result of this addition, the value of MSE will ________ decrease.

For the same point estimate of the dependent variable and the same level of significance, the confidence interval is always wider than the corresponding prediction interval.

In a regression model, a value of the error term depends upon other values of the error term.

The graph of the prediction equation obtained from the model y = β₀ + β₁X₁ + β₂X₂ + ε is a(n) ________.

If a particular multiple regression model has a small value of the C statistic and C for this model is less than k+1, where k is the number of independent variables in the model, then the model should be considered biased and therefore undesirable.

In a regression model, at any given combination of values of the independent variables, the population of potential error terms is assumed to have an F distribution.

For a given multiple regression model with three independent variables, the value of the adjusted multiple coefficient of determination is________ less than R².

Which one of the following is not an assumption about the residuals in a regression model?

In the quadratic regression model y = β₀ + β₁X₁ + β₂X₁² + ε, the β₂ term represents the

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

Even when an unimportant variable is added to a regression model, the explained variation will increase.

If we are testing the significance of the independent variable X1 and we reject the null hypothesis H0: β1 = 0, we conclude that

The variance inflation factor (VIF) measures the relationship between the dependent variable and the rest of the independent variables in the regression model.

When using a multiple regression model, we assume that error terms, or residuals, are distributed according to a(n) ________ distribution.

DFBETAs and DFFITS are statistics used to determine an outlier.

If it is desired to include marital status in a multiple regression model by using the categories single, married, separated, divorced, and widowed, what will be the effect on the model?

In a multiple regression mode, if the largest variance inflation factor (VIF) is 21.6, then it can be concluded that there are indications of multicollinearity.

The effects of different levels of qualitative independent variables are described using ________ variables.

The critical value for DFBETAs statistics is 1.

Significant ________ may exist when the overall F statistic is significant and the individual t-statistics for all independent variables are insignificant.

In a multiple regression analysis, the current model has three independent variables. The analyst decides to add another (fourth) independent variable while retaining the other three independent variables. As a result of this addition, the value of MSE will ________ decrease.

For the same point estimate of the dependent variable and the same level of significance, the confidence interval is always wider than the corresponding prediction interval.

In a regression model, a value of the error term depends upon other values of the error term.

The graph of the prediction equation obtained from the model y = β0 + β1X1 + β2X2 + ε is a(n) ________.

If a particular multiple regression model has a small value of the C statistic and C for this model is less than k+1, where k is the number of independent variables in the model, then the model should be considered biased and therefore undesirable.

In a regression model, at any given combination of values of the independent variables, the population of potential error terms is assumed to have an F distribution.

For a given multiple regression model with three independent variables, the value of the adjusted multiple coefficient of determination is________ less than R2.

Which one of the following is not an assumption about the residuals in a regression model?

In the quadratic regression model y = β0 + β1X1 + β2X12 + ε, the β2 term represents the

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

If we are testing the significance of the independent variable X₁ and we reject the null hypothesis H₀: β₁ = 0, we conclude that

The graph of the prediction equation obtained from the model y = β₀ + β₁X₁ + β₂X₂ + ε is a(n) ________.

For a given multiple regression model with three independent variables, the value of the adjusted multiple coefficient of determination is________ less than R².

In the quadratic regression model y = β₀ + β₁X₁ + β₂X₁² + ε, the β₂ term represents the