Question 1

What is it called when the independent variables are highly correlated?

Accepted Answer

A)  Autocorrelation 
B)  Multicollinearity 
C)  Homoscedasticity 
D)  Zero correlation 
E)  None of these statements are correct 
A)  Autocorrelation 
B)  Multicollinearity 
C)  Homoscedasticity 
D)  Zero correlation 
E)  None of these statements are correct

Question 2

i. The multiple standard error of estimate measures the variation about the regression plane when two independent variables are considered.
Ii) 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.
Iii) The coefficient of multiple determination reports the strength of the association between the dependent variable and the set of independent variables.

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

If the correlation between two variables, X and Y, is +0.67, what is the regression coefficient for these two variables?

Accepted Answer

A) + 0.67 B) > 0 C) < 0 D) = 0 E) None of these statements are correct A) + 0.67 B) > 0 C) < 0 D) = 0 E) None of these statements are correct

Question 4

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:   Based on the ANOVA, the multiple coefficient of determination is

Accepted Answer

A)  5.957% 
B)  59.3% 
C)  40.7% 
D)  cannot be computed 
A)  5.957% 
B)  59.3% 
C)  40.7% 
D)  cannot be computed

Question 5

i. The multiple standard error of estimate measures the variation about the regression plane when two independent variables are considered.
Ii) A multiple correlation determination equalling -0.76 is definitely possible.
Iii) The number of degrees of freedom associated with the regression sum of squares in the regression equation model equals the number of independent variables.

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 6

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, percent of population in the community holding a bachelor's degree as their highest level of education attained, and percent of population holding a High School Diploma as their highest level of education attained. [Adapted from 1st Canadian Lind text 14-14]

Given the regression equation Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment Rate (%) - 0.170 Bachelor's Degree (%) - 0.003 High School (%)
Which single event would have the strongest effect in reducing the % poor in Ontario?

Accepted Answer

A)  Decreasing the % of single families by 5% 
B)  Decreasing the Unemployment rate by 5% 
C)  Increasing the % of persons with a Bachelor's Degree by 10% 
D)  Decreasing the % of persons with a High School Diploma by 40% 
E)  Increasing the % of persons with a Bachelor's Degree by 15% 
A)  Decreasing the % of single families by 5% 
B)  Decreasing the Unemployment rate by 5% 
C)  Increasing the % of persons with a Bachelor's Degree by 10% 
D)  Decreasing the % of persons with a High School Diploma by 40% 
E)  Increasing the % of persons with a Bachelor's Degree by 15%

Question 7

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 =
Clerical, 1 = technical). The following ANOVA summarizes the regression results:   Based on the ANOVA and a 0.05 significance level, the global null hypothesis test of the multiple regression model

Accepted Answer

A)  Will be rejected and conclude that monthly salary is related to all of the independent variables 
B)  Will be rejected and conclude that monthly salary is related to at least one of the independent variables. 
C)  Will not be rejected. 
D)  Will show a high multiple coefficient of determination 
A)  Will be rejected and conclude that monthly salary is related to all of the independent variables 
B)  Will be rejected and conclude that monthly salary is related to at least one of the independent variables. 
C)  Will not be rejected. 
D)  Will show a high multiple coefficient of determination

Question 8

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 3.5 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)  777.7 
B)  796.6 
C)  810.0 
D)  601.6 
E)  769.8 
A)  777.7 
B)  796.6 
C)  810.0 
D)  601.6 
E)  769.8

Question 9

Which of the following is a characteristic of the F-distribution?

Accepted Answer

A)  Normally distributed 
B)  Positively skewed 
C)  Negatively skewed 
D)  Equal to the t-distribution 
E)  None of these statements are correct 
A)  Normally distributed 
B)  Positively skewed 
C)  Negatively skewed 
D)  Equal to the t-distribution 
E)  None of these statements are correct

Question 10

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 computed F for the global test is:

Accepted Answer

A)  7.802 
B)  25.695 
C)  15.790 
D)  26.981 
E)  114.779 
A)  7.802 
B)  25.695 
C)  15.790 
D)  26.981 
E)  114.779

Question 11

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 value of the denominator in the calculation of the multiple standard error of estimate?____________

Accepted Answer

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

Question 12

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

Accepted Answer

A)  H1: ?1 = ?2 = ?3 = ?4 
B)   H1:?1 $\neq$?2 $\neq$ ?3 $\neq$ ?4 
C)  H1: Not all the ?'s are 0 
D)  If F is less than 20.00 then fail to reject 
A)  H1: ?1 = ?2 = ?3 = ?4 
B)   H1:?1 $\neq$?2 $\neq$ ?3 $\neq$ ?4 
C)  H1: Not all the ?'s are 0 
D)  If F is less than 20.00 then fail to reject

Question 13

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 1,600 square feet and one with 1,700 square feet?____________

Accepted Answer

$30,000 ($

Question 14

What does the correlation matrix for a multiple regression analysis contain?

Accepted Answer

A)  Multiple correlation coefficients 
B)  Simple correlation coefficients 
C)  Multiple coefficients of determination 
D)  Multiple standard errors of estimate 
E)  None of these statements are correct 
A)  Multiple correlation coefficients 
B)  Simple correlation coefficients 
C)  Multiple coefficients of determination 
D)  Multiple standard errors of estimate 
E)  None of these statements are correct

Question 15

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 =
Clerical, 1 = technical). The following ANOVA summarizes the regression results:   In the regression model, which of the following are dummy variables?

Accepted Answer

A)  Intercept 
B)  Service 
C)  Service and gender 
D)  Gender and job 
E)  Service, gender, and job 
A)  Intercept 
B)  Service 
C)  Service and gender 
D)  Gender and job 
E)  Service, gender, and job

Question 16

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. A multiple regression equation defines the relationship between the dependent variable and the independent variables in the form of an equation.
Iii) If an inverse relationship exists between the dependent variable and independent variables, the regression coefficients for the independent variables are positive.

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 manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = Clerical, 1 = technical). The following ANOVA summarizes the regression results:   Based on the hypothesis tests for the individual regression coefficients,

Accepted Answer

A)  All the regression coefficients are not equal to zero. 
B)  "job" is the only significant variable in the model 
C)  Only months of service and gender are significantly related to monthly salary. 
D)  "service" is the only significant variable in the model 
A)  All the regression coefficients are not equal to zero. 
B)  "job" is the only significant variable in the model 
C)  Only months of service and gender are significantly related to monthly salary. 
D)  "service" is the only significant variable in the model

Question 18

For a unit change in the first independent variable with other things being held constant, what change can be expected in the dependent variable in the multiple regression equation Y' = 5.2 + 6.3X1 - 7.1X2?

Accepted Answer

A)  - 7.1 
B)  + 6.3 
C)  + 5.2 
D)  + 4.4 
E)  None of these statements are correct 
A)  - 7.1 
B)  + 6.3 
C)  + 5.2 
D)  + 4.4 
E)  None of these statements are correct

What is it called when the independent variables are highly correlated?

If the correlation between two variables, X and Y, is +0.67, what is the regression coefficient for these two variables?

Which of the following is a characteristic of the F-distribution?

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 computed F for the global test is:

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

What does the correlation matrix for a multiple regression analysis contain?

For a unit change in the first independent variable with other things being held constant, what change can be expected in the dependent variable in the multiple regression equation Y' = 5.2 + 6.3X1 - 7.1X2?

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

What is it called when the independent variables are highly correlated?

If the correlation between two variables, X and Y, is +0.67, what is the regression coefficient for these two variables?

Which of the following is a characteristic of the F-distribution?

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 computed F for the global test is:

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

What does the correlation matrix for a multiple regression analysis contain?

For a unit change in the first independent variable with other things being held constant, what change can be expected in the dependent variable in the multiple regression equation Y' = 5.2 + 6.3X1 - 7.1X2?

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