Question 1

True or False: From the coefficient of multiple determination, you cannot detect the strength
of the relationship between Y and any individual independent variable.

Accepted Answer

A) True 
 B)False

Question 2

True or False: The coefficient of multiple determination measures the proportion of the total
variation in the dependent variable that is explained by the set of independent variables.

Accepted Answer

A) True 
 B)False

Question 3

SCENARIO 14-15  
-True or False: Referring to Scenario 14-15, you can conclude definitively that mean teacher
salary individually has no impact on the mean percentage of students passing the proficiency test,
taking into account the effect of that instructional spending per pupil, at a 10% level of
significance based solely on but not actually computing the 90% confidence interval estimate for
β1.

Accepted Answer

A) True 
 B)False

Question 4

True or False: Consider a regression in which b2 = - 1.5 and the standard error of this
coefficient equals 0.3.To determine whether X2 is a significant explanatory variable, you would
compute an observed t-value of - 5.0.

Accepted Answer

A) True 
 B)False

Question 5

SCENARIO 14-3  
-Referring to Scenario 14-3, what is the estimated mean consumption level for an economy with
GDP equal to $4 billion and an aggregate price index of 150?

Accepted Answer

A)  $1.39 billion 
B)  $2.89 billion 
C)  $4.75 billion 
D)  $9.45 billion 
A)  $1.39 billion 
B)  $2.89 billion 
C)  $4.75 billion 
D)  $9.45 billion

Question 6

SCENARIO 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage
spending by companies.She proceeds to randomly select 26 large corporations and record
information in millions of dollars.The Microsoft Excel output below shows results of this multiple
regression.   
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, suppose the microeconomist wants to test whether the coefficient on
Capital is significantly different from 0.What is the value of the relevant t-statistic?

Accepted Answer

A)  0.609 
B)  2.617 
C)  4.804 
D)  25.432 
A)  0.609 
B)  2.617 
C)  4.804 
D)  25.432

Question 7

SCENARIO 14-1  
-Referring to Scenario 14-1, for these data, what is the estimated coefficient for the variable
Representing years an employee has been with the company, b1?

Accepted Answer

A)  0.998 
B)  3.103 
C)  4.698 
D)  21.293 
A)  0.998 
B)  3.103 
C)  4.698 
D)  21.293

Question 8

True or False: When an explanatory variable is dropped from a multiple regression model, the
adjusted r2 can increase.

Accepted Answer

A) True 
 B)False

Question 9

SCENARIO 14-14
An automotive engineer would like to be able to predict automobile mileages.She believes that the
two most important characteristics that affect mileage are horsepower and the number of cylinders (4
or 6)of a car.She believes that the appropriate model is
Y = 40 - 0.05X1 + 20X2 - 0.1X1X2
where X1 = horsepower
X2 = 1 if 4 cylinders, 0 if 6 cylinders
Y = mileage.
-Referring to Scenario 14-14, the predicted mileage for a 200 horsepower, 4-cylinder car is
________.

Accepted Answer

The answer of SCENARIO 14-14
An automotive engineer would like to...

Question 10

Accepted Answer

Question 11

SCENARIO 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage
spending by companies.She proceeds to randomly select 26 large corporations and record
information in millions of dollars.The Microsoft Excel output below shows results of this multiple
regression.   
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, at the 0.01 level of significance, what conclusion should the
Microeconomist reach regarding the inclusion of Capital in the regression model?

Accepted Answer

A)  Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01. 
B)  Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01. 
C)  Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is less than 0.01. 
D)  Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is more than 0.01. 
A)  Capital is significant in explaining corporate sales and should be included in the model because its p-value is less than 0.01. 
B)  Capital is significant in explaining corporate sales and should be included in the model because its p-value is more than 0.01. 
C)  Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is less than 0.01. 
D)  Capital is not significant in explaining corporate sales and should not be included in the model because its p-value is more than 0.01.

Question 12

The variation attributable to factors other than the relationship between the independent variables
And the explained variable in a regression analysis is represented by

Accepted Answer

A)  regression sum of squares. 
B)  error sum of squares. 
C)  total sum of squares. 
D)  regression mean squares. 
A)  regression sum of squares. 
B)  error sum of squares. 
C)  total sum of squares. 
D)  regression mean squares.

Question 13

SCENARIO 14-3  
-Referring to Scenario 14-3, the p-value for the regression model as a whole is

Accepted Answer

A)  0.05 
B)  0.01 
C)  0.001 
D)  None of the above. 
A)  0.05 
B)  0.01 
C)  0.001 
D)  None of the above.

Question 14

SCENARIO 14-3  
-Referring to Scenario 14-3, the p-value for the aggregated price index is

Accepted Answer

A)  0.05 
B)  0.01 
C)  0.001 
D)  None of the above. 
A)  0.05 
B)  0.01 
C)  0.001 
D)  None of the above.

Question 15

True or False: A multiple regression is called "multiple" because it has several data points.

Accepted Answer

A) True 
 B)False

Question 16

SCENARIO 14-5
A microeconomist wants to determine how corporate sales are influenced by capital and wage
spending by companies.She proceeds to randomly select 26 large corporations and record
information in millions of dollars.The Microsoft Excel output below shows results of this multiple
regression.   
Introduction to Multiple Regression 14-17
-Referring to Scenario 14-5, what is the p-value for testing whether Wages have a negative impact
On corporate sales?

Accepted Answer

A)  0.05 
B)  0.0001 
C)  0.00005 
D)  0.99995 
A)  0.05 
B)  0.0001 
C)  0.00005 
D)  0.99995

Question 17

SCENARIO 14-15  
-True or False: Referring to Scenario 14-15, the null hypothesis should be rejected at a 5% level
of significance when testing whether there is a significant relationship between percentage of
students passing the proficiency test and the entire set of explanatory variables.

Accepted Answer

A) True 
 B)False

Question 18

SCENARIO 14-4   
14-10 Introduction to Multiple Regression
-Referring to Scenario 14-4, suppose the builder wants to test whether the coefficient on Size is
Significantly different from 0.What is the value of the relevant t-statistic?

Accepted Answer

A)  -0.7630 
B)  3.2708 
C)  10.8668 
D)  60.0864 
A)  -0.7630 
B)  3.2708 
C)  10.8668 
D)  60.0864

Question 19

SCENARIO 14-3  
-Referring to Scenario 14-3, when the economist used a simple linear regression model with
Consumption as the dependent variable and GDP as the independent variable, he obtained an  
Value of 0.971.What additional percentage of the total variation of consumption has been
Explained by including aggregate prices in the multiple regression?

Accepted Answer

A)  98.2 
B)  11.1 
C)  2.8 
D)  1.1 
A)  98.2 
B)  11.1 
C)  2.8 
D)  1.1

Question 20

True or False: When an additional explanatory variable is introduced into a multiple regression
model, the coefficient of multiple determination will never decrease.

Accepted Answer

A) True 
 B)False

True or False: From the coefficient of multiple determination, you cannot detect the strength of the relationship between Y and any individual independent variable.

True or False: The coefficient of multiple determination measures the proportion of the total variation in the dependent variable that is explained by the set of independent variables.

True or False: Consider a regression in which b2 = - 1.5 and the standard error of this coefficient equals 0.3.To determine whether X2 is a significant explanatory variable, you would compute an observed t-value of - 5.0.

SCENARIO 14-3 -Referring to Scenario 14-3, what is the estimated mean consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?

SCENARIO 14-1 -Referring to Scenario 14-1, for these data, what is the estimated coefficient for the variable Representing years an employee has been with the company, b1?

True or False: When an explanatory variable is dropped from a multiple regression model, the adjusted r2 can increase.

The variation attributable to factors other than the relationship between the independent variables And the explained variable in a regression analysis is represented by

SCENARIO 14-3 -Referring to Scenario 14-3, the p-value for the regression model as a whole is

SCENARIO 14-3 -Referring to Scenario 14-3, the p-value for the aggregated price index is

True or False: A multiple regression is called "multiple" because it has several data points.

SCENARIO 14-15 -True or False: Referring to Scenario 14-15, the null hypothesis should be rejected at a 5% level of significance when testing whether there is a significant relationship between percentage of students passing the proficiency test and the entire set of explanatory variables.

SCENARIO 14-4 14-10 Introduction to Multiple Regression -Referring to Scenario 14-4, suppose the builder wants to test whether the coefficient on Size is Significantly different from 0.What is the value of the relevant t-statistic?

True or False: When an additional explanatory variable is introduced into a multiple regression model, the coefficient of multiple determination will never decrease.

Defining and Collecting Data

Organizing and Visualizing

Numerical Descriptive Measures

Basic Probability

Discrete Probability Distributions

Conthe Tinuonormausl Disdis Tributionstribution and Other

Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square and Nonparametric

Simple Linear Regression

Multiple Regression

Time-Series Forecasting

Business Analytics

A Roadmap for Analyzing Data

Statistical Applications in Quality Management

Decision Making

Filters

Exam 14: Introduction to Multiple

True or False: From the coefficient of multiple determination, you cannot detect the strength of the relationship between Y and any individual independent variable.

True or False: The coefficient of multiple determination measures the proportion of the total variation in the dependent variable that is explained by the set of independent variables.

True or False: Consider a regression in which b2 = - 1.5 and the standard error of this coefficient equals 0.3.To determine whether X2 is a significant explanatory variable, you would compute an observed t-value of - 5.0.

SCENARIO 14-3 -Referring to Scenario 14-3, what is the estimated mean consumption level for an economy with GDP equal to $4 billion and an aggregate price index of 150?

SCENARIO 14-1 -Referring to Scenario 14-1, for these data, what is the estimated coefficient for the variable Representing years an employee has been with the company, b1?

True or False: When an explanatory variable is dropped from a multiple regression model, the adjusted r2 can increase.

The variation attributable to factors other than the relationship between the independent variables And the explained variable in a regression analysis is represented by

SCENARIO 14-3 -Referring to Scenario 14-3, the p-value for the regression model as a whole is

SCENARIO 14-3 -Referring to Scenario 14-3, the p-value for the aggregated price index is

True or False: A multiple regression is called "multiple" because it has several data points.

SCENARIO 14-15 -True or False: Referring to Scenario 14-15, the null hypothesis should be rejected at a 5% level of significance when testing whether there is a significant relationship between percentage of students passing the proficiency test and the entire set of explanatory variables.

SCENARIO 14-4 14-10 Introduction to Multiple Regression -Referring to Scenario 14-4, suppose the builder wants to test whether the coefficient on Size is Significantly different from 0.What is the value of the relevant t-statistic?

True or False: When an additional explanatory variable is introduced into a multiple regression model, the coefficient of multiple determination will never decrease.

Defining and Collecting Data

Organizing and Visualizing

Numerical Descriptive Measures

Basic Probability

Discrete Probability Distributions

Conthe Tinuonormausl Disdis Tributionstribution and Other

Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square and Nonparametric

Simple Linear Regression

Multiple Regression

Time-Series Forecasting

Business Analytics

A Roadmap for Analyzing Data

Statistical Applications in Quality Management

Decision Making

Filters