Question 1

When does multicollinearity occur in a multiple regression analysis?

Accepted Answer

A)  Dependent variables are highly correlated 
B)  Independent variables are minimally correlated 
C)  Independent variables are highly correlated 
D)  Independent variables have no correlation 
E)  None of these statements are correct 
A)  Dependent variables are highly correlated 
B)  Independent variables are minimally correlated 
C)  Independent variables are highly correlated 
D)  Independent variables have no correlation 
E)  None of these statements are correct

Question 2

i. The multiple coefficient of determination, R2, reports the proportion of the variation in Y that is 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) A multiple correlation determination equalling -0.76 is definitely possible.

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 3

In regression analysis, the dferr =__________ .

Accepted Answer

A)  the sample size - 1 
B)  the sample size - k - 1 
C)  the number of dependent variables 
D)  the number of independent variables 
E)  the sample size - k 
A)  the sample size - 1 
B)  the sample size - k - 1 
C)  the number of dependent variables 
D)  the number of independent variables 
E)  the sample size - k

Question 4

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 5

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:

-Write out the multiple regression equation____________.

Accepted Answer

Y' = 23.004 - 0.031X

Question 6

Which test statistic do we apply to test the null hypothesis that the multiple regression coefficients are all zero?

Accepted Answer

A)  z 
B)  t 
C)  F 
D)  SPSS-X 
E)  None of these statements are correct 
A)  z 
B)  t 
C)  F 
D)  SPSS-X 
E)  None of these statements are correct

Question 7

Multiple regression analysis is applied when analyzing the relationship between

Accepted Answer

A)  An independent variable and several dependent variables 
B)  A dependent variable and several independent variables 
C)  Several dependent variables and several independent variables 
D)  Several regression equations and a single sample 
E)  None of these statements are correct 
A)  An independent variable and several dependent variables 
B)  A dependent variable and several independent variables 
C)  Several dependent variables and several independent variables 
D)  Several regression equations and a single sample 
E)  None of these statements are correct

Question 8

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income.   
Which independent variable has the strongest association with the dependent variable?

Accepted Answer

A)  Income 
B)  Age 
C)  Education 
D)  Job 
E)  None of these statements are correct 
A)  Income 
B)  Age 
C)  Education 
D)  Job 
E)  None of these statements are correct

Question 9

What is the measurement of explained variation?

Accepted Answer

A)  Coefficient of multiple determination 
B)  Coefficient of multiple nondetermination 
C)  Regression coefficient 
D)  Correlation matrix 
E)  None of these statements are correct 
A)  Coefficient of multiple determination 
B)  Coefficient of multiple nondetermination 
C)  Regression coefficient 
D)  Correlation matrix 
E)  None of these statements are correct

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.
 
-How much does tire production increase for every thousand cars produced two years ago?____________

Accepted Answer

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

Question 11

Hypotheses concerning individual regression coefficients are tested using which statistic?

Accepted Answer

A)  t-statistic 
B)  z-statistic 
C) ?2 (chi-square statistic) 
D)  H 
E)  None of these statements are correct 
A)  t-statistic 
B)  z-statistic 
C) ?2 (chi-square statistic) 
D)  H 
E)  None of these statements are correct

Question 12

What is the estimated index of satisfaction for a person who first married at 25, has an annual income of $26,500, has two children, has assets of $156,000, 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 13

In regression analysis, the dfreg = __________.

Accepted Answer

A)  the sample size - 1 
B)  the sample size - k - 1 
C)  the number of dependent variables 
D)  the number of independent variables 
E)  the sample size - k 
A)  the sample size - 1 
B)  the sample size - k - 1 
C)  the number of dependent variables 
D)  the number of independent variables 
E)  the sample size - k

Question 14

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 $200,000, 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 15

i. 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. 
ii. Multiple regression analysis examines the relationship of several dependent variables on the independent variable.
Iii) A multiple regression equation defines the relationship between the dependent variable and the independent variables in the form of an equation.

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 16

Angela Chou has been asked to investigate the determinants of poverty in Ontario communities. She collected data on 60 communities from Statistics Canada. She selected the percentage of poor persons living under the poverty line [Poor (%)], measured by Low Income Cut-Off, designed by Statistics Canada as a measure of poverty for a community, as the dependent variable. The independent variables selected are percent of single families in each community, the unemployment rate in each community, and percent of population in the community holding a bachelor's degree as their highest level of education attained.   Determine the regression equation.

Accepted Answer

A)  Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
B)  Poor (%) = -3.88 + 0.798 Single-Families (%) + 0.625 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
C)  Poor (%) = 3.88 + 0.798 Single-Families (%) + 0.625 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
D)  Poor (%) = -3.88 - 0.798 Single-Families (%) - 0.625 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
E)  Poor (%) = 3.88 + 0.798 Single-Families (%) + 0.625 Unemployment Rate (%) + 0.170 Bachelor's Degree (%) 
A)  Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
B)  Poor (%) = -3.88 + 0.798 Single-Families (%) + 0.625 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
C)  Poor (%) = 3.88 + 0.798 Single-Families (%) + 0.625 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
D)  Poor (%) = -3.88 - 0.798 Single-Families (%) - 0.625 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) 
E)  Poor (%) = 3.88 + 0.798 Single-Families (%) + 0.625 Unemployment Rate (%) + 0.170 Bachelor's Degree (%)

Question 17

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.
 
-How much does tire production change for every thousand cars produced three years ago?____________

Accepted Answer

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

Question 18

The best example of a null hypothesis for a global test of a multiple regression model is:

Accepted Answer

A)  H0: ?1 = ?2=?3 = ?4 
B)  H0: ?1 = ?2 = ?3 = ?4 
C)  H0: ?1 = 0 
D)  If F is greater than 20.00 then reject 
A)  H0: ?1 = ?2=?3 = ?4 
B)  H0: ?1 = ?2 = ?3 = ?4 
C)  H0: ?1 = 0 
D)  If F is greater than 20.00 then reject

Question 19

i. Multiple R2 measures the proportion of explained variation. 
ii. 90% of total variation in the dependent variable is explained by the independent variable for a multiple R2= 0.90.
Iii) The multiple standard error of estimate measures the variation about the regression plane when two independent variables are considered.

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 20

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income.   Which is the dependent variable?

Accepted Answer

A)  Income 
B)  Age 
C)  Education 
D)  Job 
E)  None of these statements are correct 
A)  Income 
B)  Age 
C)  Education 
D)  Job 
E)  None of these statements are correct

When does multicollinearity occur in a multiple regression analysis?

In regression analysis, the dferr =__________ .

Which test statistic do we apply to test the null hypothesis that the multiple regression coefficients are all zero?

Multiple regression analysis is applied when analyzing the relationship between

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which independent variable has the strongest association with the dependent variable?

What is the measurement of explained variation?

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. -How much does tire production increase for every thousand cars produced two years ago?____________

Hypotheses concerning individual regression coefficients are tested using which statistic?

In regression analysis, the dfreg = __________.

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. -How much does tire production change for every thousand cars produced three years ago?____________

The best example of a null hypothesis for a global test of a multiple regression model is:

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which is the dependent variable?

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

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Exam 13: Multiple Regression and Correlation Analysis

When does multicollinearity occur in a multiple regression analysis?

In regression analysis, the dferr =__________ .

Which test statistic do we apply to test the null hypothesis that the multiple regression coefficients are all zero?

Multiple regression analysis is applied when analyzing the relationship between

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which independent variable has the strongest association with the dependent variable?

What is the measurement of explained variation?

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. -How much does tire production increase for every thousand cars produced two years ago?____________

Hypotheses concerning individual regression coefficients are tested using which statistic?

In regression analysis, the dfreg = __________.

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. -How much does tire production change for every thousand cars produced three years ago?____________

The best example of a null hypothesis for a global test of a multiple regression model is:

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which is the dependent variable?

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