Question 1

Briefly explain the assumptions on which the statistical hypothesis tests associated with regression analysis are predicated.

Accepted Answer

The statistical hypothesis tests associated with regression analysis are predicated on some key assumptions about the data.
1) Linearity: This is usually checked by examining a scatter diagram of the data or examining the residual plot. If the model is appropriate, then the residuals should appear to be randomly scattered about zero, with no apparent pattern.
2) Normality of errors: Regression analysis assumes that the errors for each individual value of
X are normally distributed, with a mean of zero.
3) Homoscedasticity: This means that the variation about the regression line is constant for all values of the independent variable.
4) Independence of errors: Residuals should be independent for each value of the independent variable.

Question 2

When a scatter chart of data shows a nonlinear relationship, the nonlinear model can be expressed as:

Accepted Answer

A)  Y = β0 + β1X + β2X2 + ε 
B)  Y = β0 + β1X + β2X)2 + ε 
C)  Y = β0 + β1X + β2X 
D)  Y = β0 + β1X2 + β2X2 + ε 
A)  Y = β0 + β1X + β2X2 + ε 
B)  Y = β0 + β1X + β2X)2 + ε 
C)  Y = β0 + β1X + β2X 
D)  Y = β0 + β1X2 + β2X2 + ε A

Question 3

In predictive analysis models, a second-order polynomial has only one hill or valley.

Accepted Answer

A) True 
 B)False  True

Question 4

In functions, represented by y = abx, y rises or falls at constantly increasing rates.

Accepted Answer

A)  logarithmic 
B)  power 
C)  exponential 
D)  polynomial 
A)  logarithmic 
B)  power 
C)  exponential 
D)  polynomial

Question 5

Use the data given below to answer the following questions).
Following is an extract from a firm's database detailing the number of hours spent on the job by employees and their corresponding pay. Note: Assume a level of significance of 0.05 wherever necessary.) $$\begin{array} { | c | c | } 
\hline \text { Hours spent on the job } & \text { Salary } \$ \mathbf { ~ } \
\hline 4 & 340 \
\hline 12 & 850 \
\hline 7 & 570 \
\hline 5 & 470 \
\hline 11 & 820 \
\hline 8 & 610 \
\hline 9 & 630 \
\hline 13 & 900 \
\hline 10 & 800 \
\hline 6 & 480 \
\hline
\end{array}$$
-Construct a scatter diagram and use the Excel Trendline tool to find the best-fitting simple linear regression model.

Accepted Answer

The answer of Use the data given below to answer...

Question 6

When are logarithmic functions used in predictive analysis?

Accepted Answer

Logarithmic functions are used when the

Question 7

In Excel's Trendline tool, the value of the gives the measure of fit of the line to the data.

Accepted Answer

A)  linear function 
B)  R-squared 
C)  moving average 
D)  set intercept 
A)  linear function 
B)  R-squared 
C)  moving average 
D)  set intercept

Question 8

Which of the following is true of the R-squared R2) value in Excel's Trendline function?

Accepted Answer

A)  A value of 1.0 for R2 indicates maximum deviation of the data from the line. 
B)  If the value of R2 is above 1.0, the line will be at a perfect fit for the data. 
C)  The value of R2 will always be between -1 and 1. 
D)  As the value of R2 gets higher, the line will be a better fit for the data. 
A)  A value of 1.0 for R2 indicates maximum deviation of the data from the line. 
B)  If the value of R2 is above 1.0, the line will be at a perfect fit for the data. 
C)  The value of R2 will always be between -1 and 1. 
D)  As the value of R2 gets higher, the line will be a better fit for the data.

Question 9

While conducting regression analysis, how is constructing a normal probability plot useful?

Accepted Answer

While conducting regressions analysis us

Question 10

Which of the following is true about the observed errors associated with estimating the value of the dependent variable using the regression line?

Accepted Answer

A)  They are the horizontal distances between slopes and y-intercepts. 
B)  The errors are also referred to as critical values. 
C)  They are always maximized by the regression lines. 
D)  The errors can be negative or positive. 
A)  They are the horizontal distances between slopes and y-intercepts. 
B)  The errors are also referred to as critical values. 
C)  They are always maximized by the regression lines. 
D)  The errors can be negative or positive.

Question 11

Use the data given below to answer the following questions).
Following is an extract from a firm's database detailing the number of hours spent on the job by employees and their corresponding pay. Note: Assume a level of significance of 0.05 wherever necessary.) $$\begin{array} { | c | c | } 
\hline \text { Hours spent on the job } & \text { Salary } \$ \mathbf { ~ } \
\hline 4 & 340 \
\hline 12 & 850 \
\hline 7 & 570 \
\hline 5 & 470 \
\hline 11 & 820 \
\hline 8 & 610 \
\hline 9 & 630 \
\hline 13 & 900 \
\hline 10 & 800 \
\hline 6 & 480 \
\hline
\end{array}$$
-Interpret residual output.

Accepted Answer

From the data, the first observation has

Question 12

In multiple regression, R Square is referred to as the:

Accepted Answer

A)  multiple correlation coefficient. 
B)  coefficient of autocorrelation. 
C)  coefficient of multiple determination. 
D)  multiple significance coefficient. 
A)  multiple correlation coefficient. 
B)  coefficient of autocorrelation. 
C)  coefficient of multiple determination. 
D)  multiple significance coefficient.

Question 13

What is the expected value for a 90 year-old piece of furniture?

Accepted Answer

A)  $1002.45 
B)  $997.98 
C)  $934.56 
D)  $1033.21 
A)  $1002.45 
B)  $997.98 
C)  $934.56 
D)  $1033.21

Question 14

List the systematic approach to build good multiple regression models.

Accepted Answer

1) Construct a model with all available

Question 15

Which of the following Excel functions is applied to test for significance of regression?

Accepted Answer

A)  COVAR 
B)  ANOVA 
C)  SINH 
D)  TREND 
A)  COVAR 
B)  ANOVA 
C)  SINH 
D)  TREND

Question 16

How many additional dummy variables are required if a categorical variable has 4 levels?

Accepted Answer

A)  2 
B)  3 
C)  1 
D)  4 
A)  2 
B)  3 
C)  1 
D)  4

Question 17

Which of the following equations correctly expresses the relationship between the two variables?

Accepted Answer

A)  Value = -181.16) + 13.493 × Number of years 
B)  Number of years = Value / 12.537 
C)  Value = 459.34 / Number of years) × 4.536 
D)  Number of years = 17.538 × Value) / -157.49) 
A)  Value = -181.16) + 13.493 × Number of years 
B)  Number of years = Value / 12.537 
C)  Value = 459.34 / Number of years) × 4.536 
D)  Number of years = 17.538 × Value) / -157.49)

Question 18

Regression models of data focus on predicting the future.

Accepted Answer

A)  missing 
B)  time-series 
C)  panel 
D)  cross-sectional 
A)  missing 
B)  time-series 
C)  panel 
D)  cross-sectional

Question 19

In a linear relationship, which of the following accounts for the many possible values of the dependent variable that vary around the mean?

Accepted Answer

A)  the coefficient of the dependent variable X 
B)  the value of the intercept ß0 
C)  the random error term ε 
D)  the standard error SYX 
A)  the coefficient of the dependent variable X 
B)  the value of the intercept ß0 
C)  the random error term ε 
D)  the standard error SYX

Question 20

Creating a scatter chart with an added trendline is visually superior to the scatter chart generated by line fit plots.

Accepted Answer

A) True 
 B)False

Briefly explain the assumptions on which the statistical hypothesis tests associated with regression analysis are predicated.

When a scatter chart of data shows a nonlinear relationship, the nonlinear model can be expressed as:

In predictive analysis models, a second-order polynomial has only one hill or valley.

In functions, represented by y = abx, y rises or falls at constantly increasing rates.

When are logarithmic functions used in predictive analysis?

In Excel's Trendline tool, the value of the gives the measure of fit of the line to the data.

Which of the following is true of the R-squared R2) value in Excel's Trendline function?

While conducting regression analysis, how is constructing a normal probability plot useful?

Which of the following is true about the observed errors associated with estimating the value of the dependent variable using the regression line?

In multiple regression, R Square is referred to as the:

What is the expected value for a 90 year-old piece of furniture?

List the systematic approach to build good multiple regression models.

Which of the following Excel functions is applied to test for significance of regression?

How many additional dummy variables are required if a categorical variable has 4 levels?

Which of the following equations correctly expresses the relationship between the two variables?

Regression models of data focus on predicting the future.

In a linear relationship, which of the following accounts for the many possible values of the dependent variable that vary around the mean?

Creating a scatter chart with an added trendline is visually superior to the scatter chart generated by line fit plots.

Introduction to Labour Market Economics

Database Analytics

Data Visualization

Descriptive Statistics

Probability Distributions and Data Modeling

Sampling and Estimation

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Exam 8: Trendlines and Regression Analysis

Briefly explain the assumptions on which the statistical hypothesis tests associated with regression analysis are predicated.

When a scatter chart of data shows a nonlinear relationship, the nonlinear model can be expressed as:

In predictive analysis models, a second-order polynomial has only one hill or valley.

In functions, represented by y = abx, y rises or falls at constantly increasing rates.

When are logarithmic functions used in predictive analysis?

In Excel's Trendline tool, the value of the gives the measure of fit of the line to the data.

Which of the following is true of the R-squared R2) value in Excel's Trendline function?

While conducting regression analysis, how is constructing a normal probability plot useful?

Which of the following is true about the observed errors associated with estimating the value of the dependent variable using the regression line?

In multiple regression, R Square is referred to as the:

What is the expected value for a 90 year-old piece of furniture?

List the systematic approach to build good multiple regression models.

Which of the following Excel functions is applied to test for significance of regression?

How many additional dummy variables are required if a categorical variable has 4 levels?

Which of the following equations correctly expresses the relationship between the two variables?

Regression models of data focus on predicting the future.

In a linear relationship, which of the following accounts for the many possible values of the dependent variable that vary around the mean?

Creating a scatter chart with an added trendline is visually superior to the scatter chart generated by line fit plots.

Introduction to Labour Market Economics

Database Analytics

Data Visualization

Descriptive Statistics

Probability Distributions and Data Modeling

Sampling and Estimation

Statistical Inference

Forecasting Techniques

Introduction to Data Mining

Spreadsheet Modeling and Analysis

Simulation and Risk Analysis

Linear Optimization

Integer and Nonlinear Optimization Models

Optimization Analytics

Decision Analysis

Filters