Question 1

What does the multiple standard error of estimate measure?

Accepted Answer

A)  Change in Y' for a change in X1 
B)  Variation of the data points between Y and Y'. 
C)  Variation due to the relationship between the dependent and independent variables 
D)  Amount of explained variation 
E)  None of these statements are correct 
A)  Change in Y' for a change in X1 
B)  Variation of the data points between Y and Y'. 
C)  Variation due to the relationship between the dependent and independent variables 
D)  Amount of explained variation 
E)  None of these statements are correct B

Question 2

i. The multiple coefficient of determination, R2, reports the proportion of the variation in Y that is not explained by the variation in the set of independent variables.
Ii) The coefficient of multiple determination reports the strength of the association between the dependent variable and the set of independent variables.
Iii) The multiple standard error of estimate for two independent variables measures the variation about a regression plane.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false D

Question 3

What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $60,000, has two children, has assets of $350,000, has in index of health status of 141, and has 2 social activities per week?
A sample of General Mills employees was studied to determine their degree of satisfaction with their present life. A special index, called the index of satisfaction, was used to measure satisfaction. Six factors were studied: age at the time of first marriage (X1), annual income (X2), number of children living (X3), value of all assets (X4), status of health in the form of an index (X5), and the average number of social activities per week (X6). Suppose the multiple regression equation is:
Y' = 16.24 + 0.017X1 + 0.00028X2 + 42X3 + 0.0012X4 + 0.19X5 + 26.8X6

Accepted Answer

A)  777.7 
B)  796.6 
C)  588.6 
D)  601.6 
E)  769.8 
A)  777.7 
B)  796.6 
C)  588.6 
D)  601.6 
E)  769.8 C

Question 4

The information above is from the multiple regression analysis computer output for 28 teams in Major League Baseball. The model is designed to predict wins using attendance, payroll, batting average, home runs, stolen bases, errors, and team ERA. The critical value of F to be used in the global test of the model is: (5% level of significance)

Accepted Answer

A)  2.51 
B)  2.58 
C)  3.70 
D)  5.57 
E)  3.39 
A)  2.51 
B)  2.58 
C)  3.70 
D)  5.57 
E)  3.39

Question 5

If a multiple regression analysis is based on ten independent variables collected from a sample of 125 observations, what will be the value of the denominator in the calculation of the multiple standard error of estimate?

Accepted Answer

A)  125 
B)  10 
C)  114 
D)  115 
E)  None of these statements are correct 
A)  125 
B)  10 
C)  114 
D)  115 
E)  None of these statements are correct

Question 6

The coefficient of determination measures the proportion of

Accepted Answer

A)  explained variation relative to total variation. 
B)  variation due to the relationship among variables. 
C)  error variation relative to total variation. 
D)  variation due to regression. 
E)  None of these statements are correct. 
A)  explained variation relative to total variation. 
B)  variation due to the relationship among variables. 
C)  error variation relative to total variation. 
D)  variation due to regression. 
E)  None of these statements are correct.

Question 7

What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $46,000, has two children, has assets of $350,000, has in index of health status of 141, and has 2.5 social activities per week?
A sample of General Mills employees was studied to determine their degree of satisfaction with their present life. A special index, called the index of satisfaction, was used to measure satisfaction. Six factors were studied: age at the time of first marriage (X1), annual income (X2), number of children living (X3), value of all assets (X4), status of health in the form of an index (X5), and the average number of social activities per week (X6). Suppose the multiple regression equation is:
Y' = 16.24 + 0.017X1 +0.00028X2 + 42X3 + 0.0012X4 + 0.19X5 + 26.8X6

Accepted Answer

A)  368.3 
B)  421.6 
C)  366.0 
D)  601.6 
E)  769.8 
A)  368.3 
B)  421.6 
C)  366.0 
D)  601.6 
E)  769.8

Question 8

It has been hypothesized that overall academic success for freshmen at college as measured by grade point average (GPA) is a function of IQ scores (X1), hours spent studying each week (X2), and one's high school average (X3). Suppose the regression equation is:

Y' = -6.9 + 0.055X1 + 0.107X2 + 0.0083X3.
The multiple standard error is 6.313 and RS1U1P12S1S1P0 = 0.826.

-How will a student's GPA be affected if an additional hour is spent studying each weeknight? ____________

Accepted Answer

The answer of It has been hypothesized that overall academic...

Question 9

i. Multiple regression is used when two or more independent variables are used to predict a value of a single dependent variable. 
ii. The values of b1, b2 and b3 in a multiple regression equation are called the net regression coefficients. They indicate the change in the predicted value for a unit change in one X when the other X variables are held constant.
Iii) Multiple regression analysis examines the relationship of several dependent variables on the
Independent variable.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 10

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data.
 
-Which variable in the model is the least significant in predicting tire production?____________

Accepted Answer

The answer of The production of automobile tires in any...

Question 11

A real estate agent developed a model to relate a house's selling price (Y) to the area of floor space (X) and the area of floor space squared (X2). The multiple regression equation for this model is:
Y = 125 - 3X + X2
where: Y = selling price (times $1,000)
X = square feet of floor space (times 100)

-What is the difference in selling prices of a house with 1,650 square feet and one with 1,750 square feet?____________

Accepted Answer

$31,000 ($

Question 12

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data.
 
-What is the equation for our model?____________

Accepted Answer

00X₁ + 0.25

Question 13

What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $100,000, has two children, has assets of $500,000, has in index of health status of 141, and has 3 social activities per week?
A sample of General Mills employees was studied to determine their degree of satisfaction with their present life. A special index, called the index of satisfaction, was used to measure satisfaction. Six factors were studied: age at the time of first marriage (X1), annual income (X2), number of children living (X3), value of all assets (X4), status of health in the form of an index (X5), and the average number of social activities per week (X6). Suppose the multiple regression equation is:
Y' = 16.24 + 0.017X1 +0.00028X2 + 42X3 + 0.0012X4 + 0.19X5 + 26.8X6

Accepted Answer

A)  777.7 
B)  796.6 
C)  588.6 
D)  601.6 
E)  769.8 
A)  777.7 
B)  796.6 
C)  588.6 
D)  601.6 
E)  769.8

Question 14

Twenty-one executives in a large corporation were randomly selected for a study in which several factors were examined to determine their effect on annual salary (expressed in $000's). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to and the level of their responsibility. A regression analysis was performed using a popular spreadsheet program with the following regression output:
 
-What is the effect on salary for an increase of one level of responsibility if the other variables are held constant?____________

Accepted Answer

The answer of Twenty-one executives in a large corporation were...

Question 15

What happens as the scatter of data values about the regression plane increases?

Accepted Answer

A)  Standard error of estimate increases 
B)  R2 decreases 
C)  (1 - R2) increases 
D)  Residual sum of squares increases 
E)  All of the choices are correct 
A)  Standard error of estimate increases 
B)  R2 decreases 
C)  (1 - R2) increases 
D)  Residual sum of squares increases 
E)  All of the choices are correct

Question 16

i. A variable whose possible outcomes are coded as a "1" or a "0" is called a dummy variable. 
ii. A dummy variable is added to the regression equation to control for error.
Iii) If the null hypothesis ?4 = 0 is not rejected, then the independent variable X4 has no effect in predicting the dependent variable.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 17

A real estate agent developed a model to relate a house's selling price (Y) to the area of floor space (X) and the area of floor space squared (X2). The multiple regression equation for this model is:
Y = 125 - 3X + X2
where: Y = selling price (times $1,000)
X = square feet of floor space (times 100)

-What is the difference in selling prices of a house with 1,700 square feet and one with 1,800 square feet?____________

Accepted Answer

$32,000 ($

Question 18

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data.
 
-What is the proportion of variation in tires produced by our predictor variables in the model?____________

Accepted Answer

The answer of The production of automobile tires in any...

Question 19

Twenty-one executives in a large corporation were randomly selected for a study in which several factors were examined to determine their effect on annual salary (expressed in $000's). The factors selected were age, seniority, years of college, number of company divisions they had been exposed to and the level of their responsibility. A regression analysis was performed using a popular spreadsheet program with the following regression output:
 
-What is the proportion of the variation in salary accounted for by the set of independent variables?____________

Accepted Answer

The answer of Twenty-one executives in a large corporation were...

Question 20

The information above is from the multiple regression analysis computer output for 28 teams in Major League Baseball. The model is designed to predict wins using attendance, payroll, batting average, home runs, stolen bases, errors, and team ERA. Predict the number of wins for a team with:
BATAVG = 0.260 HOMERUNS = 150 ERA = 3
STOLENBASE = 100 ERROR = 100
PAYROLL = 25(million) ATTENDANCE = 3(million)

Accepted Answer

A)  77 
B)  101 
C)  187 
D)  210 
E)  186 
A)  77 
B)  101 
C)  187 
D)  210 
E)  186

What does the multiple standard error of estimate measure?

If a multiple regression analysis is based on ten independent variables collected from a sample of 125 observations, what will be the value of the denominator in the calculation of the multiple standard error of estimate?

The coefficient of determination measures the proportion of

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data. -Which variable in the model is the least significant in predicting tire production?____________

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data. -What is the equation for our model?____________

What happens as the scatter of data values about the regression plane increases?

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Chi-Square Applications for Nominal Data

Index Numbers

Time Series and Forecasting

An Introduction to Decision Theory

Filters

Exam 13: Multiple Regression and Correlation Analysis

What does the multiple standard error of estimate measure?

If a multiple regression analysis is based on ten independent variables collected from a sample of 125 observations, what will be the value of the denominator in the calculation of the multiple standard error of estimate?

The coefficient of determination measures the proportion of

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data. -Which variable in the model is the least significant in predicting tire production?____________

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years. Suppose our econometric model resulted in the following data. -What is the equation for our model?____________

What happens as the scatter of data values about the regression plane increases?

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Linear Regression and Correlation

Chi-Square Applications for Nominal Data

Index Numbers

Time Series and Forecasting

An Introduction to Decision Theory

Filters