Exam 16: Regression Analysis: Model Building

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The following model The following model   is referred to as a is referred to as a

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A regression model relating a dependent variable, Y, with one independent variable, X1, resulted in an SSE of 400. Another regression model with the same dependent variable, Y, and two independent variables, X1 and X2, resulted in an SSE of 320. At α\alpha = .05, determine if X2 contributed significantly to the model. The sample size for both models was 20.

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Multiple regression analysis was used to study the relationship between a dependent variable, Y, and three independent variables X1, X2 and, X3. The following is a partial result of the regression analysis involving 20 observations.  Multiple regression analysis was used to study the relationship between a dependent variable, Y, and three independent variables X<sub>1</sub>, X<sub>2</sub> and, X<sub>3</sub>. The following is a partial result of the regression analysis involving 20 observations.    a.Compute the coefficient of determination. b.Perform a t test and determine whether or not  \beta <sub>1</sub> is significantly different from zero ( \alpha = 0.05). c.Perform a t test and determine whether or not  \beta <sub>2</sub> is significantly different from zero ( \alpha = 0.05). d.Perform a t test and determine whether or not  \beta <sub>3</sub> is significantly different from zero ( \alpha  = 0.05). e.At  \alpha  = 0.05, perform an F test and determine whether or not the regression model is significant. a.Compute the coefficient of determination. b.Perform a t test and determine whether or not β\beta 1 is significantly different from zero ( α\alpha = 0.05). c.Perform a t test and determine whether or not β\beta 2 is significantly different from zero ( α\alpha = 0.05). d.Perform a t test and determine whether or not β\beta 3 is significantly different from zero ( α\alpha = 0.05). e.At α\alpha = 0.05, perform an F test and determine whether or not the regression model is significant.

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Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained. Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained.   For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The value of SSE is For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The value of SSE is

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Exhibit 16-1 In a regression analysis involving 25 observations, the following estimated regression equation was developed.  Exhibit 16-1 In a regression analysis involving 25 observations, the following estimated regression equation was developed.   Also, the following standard errors and the sum of squares were obtained. S<sub>b1</sub> = 3 S<sub>b2</sub> = 6 S<sub>b3</sub> = 7 SST = 4,800 SSE = 1,296 -Refer to Exhibit 16-1. If we are interested in testing for the significance of the relationship among the variables (i.e., significance of the model) the critical value of F at  \alpha  = 0.05 is Also, the following standard errors and the sum of squares were obtained. Sb1 = 3 Sb2 = 6 Sb3 = 7 SST = 4,800 SSE = 1,296 -Refer to Exhibit 16-1. If we are interested in testing for the significance of the relationship among the variables (i.e., significance of the model) the critical value of F at α\alpha = 0.05 is

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Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained. Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained.   For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The test statistic F for testing the significance of the above model is For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The test statistic F for testing the significance of the above model is

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Exhibit 16-3 Below you are given a partial computer output based on a sample of 25 observations. Exhibit 16-3 Below you are given a partial computer output based on a sample of 25 observations.   -Refer to Exhibit 16-3. The estimated regression equation is -Refer to Exhibit 16-3. The estimated regression equation is

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Consider the following data for two variables x and y.  Consider the following data for two variables x and y.    a.An estimated regression equation of the form   was developed for the above data and the results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    b.A regression equation of the form   was developed for the above data and results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    c.Predict the value of y when x = 5. a.An estimated regression equation of the form  Consider the following data for two variables x and y.    a.An estimated regression equation of the form   was developed for the above data and the results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    b.A regression equation of the form   was developed for the above data and results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    c.Predict the value of y when x = 5. was developed for the above data and the results are shown below. Comment on the adequacy of this equation for predicting y. Let α\alpha = .05.  Consider the following data for two variables x and y.    a.An estimated regression equation of the form   was developed for the above data and the results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    b.A regression equation of the form   was developed for the above data and results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    c.Predict the value of y when x = 5. b.A regression equation of the form  Consider the following data for two variables x and y.    a.An estimated regression equation of the form   was developed for the above data and the results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    b.A regression equation of the form   was developed for the above data and results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    c.Predict the value of y when x = 5. was developed for the above data and results are shown below. Comment on the adequacy of this equation for predicting y. Let α\alpha = .05.  Consider the following data for two variables x and y.    a.An estimated regression equation of the form   was developed for the above data and the results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    b.A regression equation of the form   was developed for the above data and results are shown below. Comment on the adequacy of this equation for predicting y. Let  \alpha  = .05.    c.Predict the value of y when x = 5. c.Predict the value of y when x = 5.

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Exhibit 16-3 Below you are given a partial computer output based on a sample of 25 observations.  Exhibit 16-3 Below you are given a partial computer output based on a sample of 25 observations.   -Refer to Exhibit 16-3. We want to test whether the parameter  \beta <sub>2</sub> is significant. The test statistic equals -Refer to Exhibit 16-3. We want to test whether the parameter β\beta 2 is significant. The test statistic equals

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Which of the following tests is used to determine whether an additional variable makes a significant contribution to a multiple regression model?

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Exhibit 16-3 Below you are given a partial computer output based on a sample of 25 observations. Exhibit 16-3 Below you are given a partial computer output based on a sample of 25 observations.   -Refer to Exhibit 16-3. The critical t value obtained from the table to test an individual parameter at the 5% level is -Refer to Exhibit 16-3. The critical t value obtained from the table to test an individual parameter at the 5% level is

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A regression analysis relating a company's sales, their advertising expenditure, price, and time resulted in the following. A regression analysis relating a company's sales, their advertising expenditure, price, and time resulted in the following.    a.At 95% confidence, determine whether or not the regression model is significant. Fully explain how you arrived at your conclusion (give numerical reasoning) and what your answer indicates. b.At 95% confidence determine which variables are significant and which are not. Explain how you arrived at your conclusion (Give numerical reasoning). c.Fully explain the meaning of R-square, which is given in this model. Be very specific and give numerical explanation. a.At 95% confidence, determine whether or not the regression model is significant. Fully explain how you arrived at your conclusion (give numerical reasoning) and what your answer indicates. b.At 95% confidence determine which variables are significant and which are not. Explain how you arrived at your conclusion (Give numerical reasoning). c.Fully explain the meaning of R-square, which is given in this model. Be very specific and give numerical explanation.

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Consider the following data. Consider the following data.    a.Draw a scatter diagram. Does the relationship between X and Y appear to be linear? b.Assume the relationship between X and Y can best be given by   Estimate the parameters of this curvilinear function. a.Draw a scatter diagram. Does the relationship between X and Y appear to be linear? b.Assume the relationship between X and Y can best be given by Consider the following data.    a.Draw a scatter diagram. Does the relationship between X and Y appear to be linear? b.Assume the relationship between X and Y can best be given by   Estimate the parameters of this curvilinear function. Estimate the parameters of this curvilinear function.

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A model in the form of y = β\beta 0 + β\beta 1z1 + β\beta 2z2 + . . . + β\beta pzp + β\beta where each independent variable zj (for j = 1, 2, . . ., p) is a function of xj . xj is known as the

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Exhibit 16-4 In a laboratory experiment, data were gathered on the life span (Y in months) of 33 rats, units of daily protein intake (X1), and whether or not agent X2 (a proposed life extending agent) was added to the rats diet (X2 = 0 if agent X2 was not added, and X2 = 1 if agent was added.) From the results of the experiment, the following regression model was developed. Exhibit 16-4 In a laboratory experiment, data were gathered on the life span (Y in months) of 33 rats, units of daily protein intake (X<sub>1</sub>), and whether or not agent X<sub>2</sub> (a proposed life extending agent) was added to the rats diet (X<sub>2</sub> = 0 if agent X<sub>2</sub> was not added, and X<sub>2</sub> = 1 if agent was added.) From the results of the experiment, the following regression model was developed.   Also provided are SSR = 60 and SST = 180. -Refer to Exhibit 16-4. The multiple coefficient of determination is Also provided are SSR = 60 and SST = 180. -Refer to Exhibit 16-4. The multiple coefficient of determination is

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A researcher is trying to decide whether or not to add another variable to his model. He has estimated the following model from a sample of 28 observations. A researcher is trying to decide whether or not to add another variable to his model. He has estimated the following model from a sample of 28 observations.   SSE = 1,425 SSR = 1,326 He has also estimated the model with an additional variable X<sub>3</sub>. The results are   SSE = 1,300 SSR = 1,451 What advice would you give this researcher? Use a .05 level of significance. SSE = 1,425 SSR = 1,326 He has also estimated the model with an additional variable X3. The results are A researcher is trying to decide whether or not to add another variable to his model. He has estimated the following model from a sample of 28 observations.   SSE = 1,425 SSR = 1,326 He has also estimated the model with an additional variable X<sub>3</sub>. The results are   SSE = 1,300 SSR = 1,451 What advice would you give this researcher? Use a .05 level of significance. SSE = 1,300 SSR = 1,451 What advice would you give this researcher? Use a .05 level of significance.

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A data set consisting of 7 observations of a dependent variable y and two independent variables x1 and x2 was used in a regression analysis. Using (x1) as the only independent variable, the following function is provided.  A data set consisting of 7 observations of a dependent variable y and two independent variables x<sub>1</sub> and x<sub>2</sub> was used in a regression analysis. Using (x<sub>1</sub>) as the only independent variable, the following function is provided.   = 0.408 + 1.338x<sub>1</sub> The SSE for the above model is 39.535. Using both x<sub>1</sub> and x<sub>2</sub> as independent variables yields the following function.   = 0.805 + 0.498x<sub>1</sub> - 0.477x<sub>2</sub> The SSE for this latter function is 1.015. Use an F test and determine if x<sub>2</sub> contributes significantly to the model. Let  \alpha  = 0.05. = 0.408 + 1.338x1 The SSE for the above model is 39.535. Using both x1 and x2 as independent variables yields the following function.  A data set consisting of 7 observations of a dependent variable y and two independent variables x<sub>1</sub> and x<sub>2</sub> was used in a regression analysis. Using (x<sub>1</sub>) as the only independent variable, the following function is provided.   = 0.408 + 1.338x<sub>1</sub> The SSE for the above model is 39.535. Using both x<sub>1</sub> and x<sub>2</sub> as independent variables yields the following function.   = 0.805 + 0.498x<sub>1</sub> - 0.477x<sub>2</sub> The SSE for this latter function is 1.015. Use an F test and determine if x<sub>2</sub> contributes significantly to the model. Let  \alpha  = 0.05. = 0.805 + 0.498x1 - 0.477x2 The SSE for this latter function is 1.015. Use an F test and determine if x2 contributes significantly to the model. Let α\alpha = 0.05.

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Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained. Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained.   For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The coefficient of determination for this model is For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The coefficient of determination for this model is

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Forty-eight observations of a dependent variable (Y) and five independent variables resulted in an SSE of 438. When two additional independent variables were added to the model, the SSE was reduced to 375. At 95% confidence, determine whether or not the two additional independent variables contribute significantly to the model.

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Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained. Exhibit 16-2 In a regression model involving 30 observations, the following estimated regression equation was obtained.   For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The degrees of freedom associated with SSE are For this model, SSR = 1,740 and SST = 2,000. -Refer to Exhibit 16-2. The degrees of freedom associated with SSE are

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