Question 1

In multiple regression, a dummy variable can be included in a multiple regression model as

Accepted Answer

A)  an additional quantitative variable. 
B)  a nominal variable with three or more values. 
C)  a nominal variable with only two values. 
D)  a new regression coeﬃcient. 
A)  an additional quantitative variable. 
B)  a nominal variable with three or more values. 
C)  a nominal variable with only two values. 
D)  a new regression coeﬃcient.

Question 2

i. A multiple regression equation deﬁnes the relationship between the dependent variable and the
Independent variables in the form of an equation.
ii. Autocorrelation often happens when data has been collected over periods of time.
iii. Homoscedasticity occurs when the variance of the residuals (Y - Y') is different for different
Values of Y'.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 3

i. If an inverse relationship exists between the dependent variable and independent variables, the
Regression coeﬃcients for the independent variables are positive.
ii. Given a multiple linear equation Y' = 5.1 + 2.2X1 - 3.5X2, assuming other things are held constant,
An increase of one unit in the second independent variable will cause a -3.5 unit change in Y.
iii. When the variance of the differences between the actual and the predicted values of the
Dependent variable are approximately the same, the variables are said to exhibit homoscedasticity.

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 4

It is thought that there are a variety of factors that affect a teacher's salary. Using the following
Printout and sample data, determine whether the holding of a PhD degree is a signiﬁcant variable
When tested at the 10% level of signiﬁcance.
X1 is years of teaching experience, x2 is principal's rating and x3 is the presence of a PhD or not.

Accepted Answer

A)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is rejected, and so the holding of a PhD should be included in the analysis. 
B)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
C)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
D)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is rejected, and so the PhD should be included in the analysis. 
A)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is rejected, and so the holding of a PhD should be included in the analysis. 
B)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
C)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
D)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is rejected, and so the PhD should be included in the analysis.

Question 5

The following correlations were computed as part of a multiple regression analysis that used
Education, job, and age to predict income.  
What is this table called?

Accepted Answer

A)  Net regression coeﬃcients 
B)  Coeﬃcients of nondetermination 
C)  Analysis of variance 
D)  Correlation matrix 
A)  Net regression coeﬃcients 
B)  Coeﬃcients of nondetermination 
C)  Analysis of variance 
D)  Correlation matrix

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. 
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.

Question 7

Twenty-one executives in a large corporation were randomly selected to study the effect of several
Factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of
College, number of company divisions they had been exposed to, and the level of their
Responsibility. The results of the regression analysis follow:  
Test the hypothesis that the regression coeﬃcient for age is equal to 0 at the 0.05 signiﬁcance
Level. Report the critical value, the calculated test-statistic, and your decision.

Accepted Answer

A)  t-critical = ±2.131, t-calculated = -0.169, fail to reject. 
B)  t-critical = ±2.131, t-calculated = -0.183, fail to reject. 
C)  t-critical = ±1.753, t-calculated = -0.169, fail to reject. 
D)  t-critical = ±1.753, t-calculated = -0.169, reject. 
A)  t-critical = ±2.131, t-calculated = -0.169, fail to reject. 
B)  t-critical = ±2.131, t-calculated = -0.183, fail to reject. 
C)  t-critical = ±1.753, t-calculated = -0.169, fail to reject. 
D)  t-critical = ±1.753, t-calculated = -0.169, reject.

Question 8

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.
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?

Accepted Answer

A)  777.7 
B)  835.9 
C)  588.6 
D)  601.6 
E)  769.8 
A)  777.7 
B)  835.9 
C)  588.6 
D)  601.6 
E)  769.8

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 10

What is the proportion of the variation in salary accounted for by the set of independent variables?

Accepted Answer

A)  91.4% 
B)  29.19% 
C)  83.3% 
D)  54.1% 
E)  9.56% 
A)  91.4% 
B)  29.19% 
C)  83.3% 
D)  54.1% 
E)  9.56%

Question 11

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)  (i), (ii), and (iii) are all false statements. 
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)  (i), (ii), and (iii) are all false statements.

Question 12

The information below 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 diagram above indicates that the multiple regression model has:

Accepted Answer

A)  autocorrelation. 
B)  multicollinearity. 
C)  normality. 
D)  heteroscedasticity. 
E)  homoscedasticity. 
A)  autocorrelation. 
B)  multicollinearity. 
C)  normality. 
D)  heteroscedasticity. 
E)  homoscedasticity.

Question 13

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 R2 = 0.826.Assuming other independent variables are held
Constant, what effect on the GPA will there be if the numbers of hours spent studying per week
Increases from 32 to 36?

Accepted Answer

A)  3.1446 
B)  -0.824 
C)  +0.428 
D)  -0.428 
E)  +0.824 
A)  3.1446 
B)  -0.824 
C)  +0.428 
D)  -0.428 
E)  +0.824

Question 14

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
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?

Accepted Answer

A)  368.3 
B)  447.3 
C)  366.0 
D)  601.6 
E)  769.8 
A)  368.3 
B)  447.3 
C)  366.0 
D)  601.6 
E)  769.8

Question 15

It is thought that there are a variety of factors that affect a teacher's salary. Using the following
Printout and sample data, determine whether the holding of a PhD degree is a signiﬁcant variable
When tested at the 10% level of signiﬁcance.

Accepted Answer

A)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is rejected, and so the holding of a PhD should be included in the analysis. 
B)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
C)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
D)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is rejected, and so the PhD should be included in the analysis. 
A)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is rejected, and so the holding of a PhD should be included in the analysis. 
B)  Since the p-value is less than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
C)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is accepted, and so the PhD should not be included in the analysis. 
D)  Since the p-value is more than the level of signiﬁcance, the null hypothesis is rejected, and so the PhD should be included in the analysis.

Question 16

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 
A)  Income 
B)  Age 
C)  Education 
D)  Job

Question 17

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.
Given the regression equation Poor (%) = -3.81 + 0.798 Single-Families (%) + 0.624 Unemployment
Rate (%) - 0.170 Bachelor's Degree (%) - 0.003 High School (%)
Interpret the numbers 3.81 and 0.798.

Accepted Answer

A)  As the % of Single Families in an Ontario community increases, the % of poor families increase as well, with a maximum of 3.81% of the population being poor. 
B)  As the % of Single Families in an Ontario community increases, the % of poor families decrease. 
C)  There are 3.81% poor families and 0.798 Single-Families in Ontario communities. 
D)  3.81 is the y-intercept. When all of the dependent variables have a value of zero, we can expect that 3.81% of the community to be poor. 0.789 indicates that for an extra 0.789% of
Poor families in a community, we can expect that the % of single families will increase by
1%) 
E)  When all of the independent variables have a value of zero, we can expect that -3.81% of the community to be poor, i.e. 0%. The 0.798 indicates that for each extra % of single 
A)  As the % of Single Families in an Ontario community increases, the % of poor families increase as well, with a maximum of 3.81% of the population being poor. 
B)  As the % of Single Families in an Ontario community increases, the % of poor families decrease. 
C)  There are 3.81% poor families and 0.798 Single-Families in Ontario communities. 
D)  3.81 is the y-intercept. When all of the dependent variables have a value of zero, we can expect that 3.81% of the community to be poor. 0.789 indicates that for an extra 0.789% of
Poor families in a community, we can expect that the % of single families will increase by
1%) 
E)  When all of the independent variables have a value of zero, we can expect that -3.81% of the community to be poor, i.e. 0%. The 0.798 indicates that for each extra % of single

Question 18

What are the degrees of freedom associated with the regression sum of squares?

Accepted Answer

A)  Number of independent variables 
B)  1 
C)  F-ratio 
D)  (n - 2) 
A)  Number of independent variables 
B)  1 
C)  F-ratio 
D)  (n - 2)

Question 19

What is the selling price of a house with 1,000 square feet? ______

Accepted Answer

A)  $305 000 
B)  $125 000 
C)  $300 000 
D)  $195 000 
A)  $305 000 
B)  $125 000 
C)  $300 000 
D)  $195 000

Question 20

What is the y- intercept (a)?

Accepted Answer

A)  $125 000 
B)  $125 
C)  $3000 
D)  $-3000 
A)  $125 000 
B)  $125 
C)  $3000 
D)  $-3000

In multiple regression, a dummy variable can be included in a multiple regression model as

The following correlations were computed as part of a multiple regression analysis that used Education, job, and age to predict income. What is this table called?

The coeﬃcient of determination measures the proportion of

What is the proportion of the variation in salary accounted for by the set of independent variables?

It is thought that there are a variety of factors that affect a teacher's salary. Using the following Printout and sample data, determine whether the holding of a PhD degree is a signiﬁcant variable When tested at the 10% level of signiﬁcance.

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 are the degrees of freedom associated with the regression sum of squares?

What is the selling price of a house with 1,000 square feet? ______

What is the y- intercept (a)?

What Is Statistics

Describing Data: Frequencydistributions and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Pata

A Sulvey of Probability Concepts

Discrete Probability Distributions

Continuous Probabilitydistributions

Sampling Methods and the Central Umit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two Sample Tests of Hypothesis

Analysis of Variance

Multiple Regression and Correlation Analysis

Chi-Square Applications

Decision Making and Payoff Tables in Investment Scenarios

Filters

Exam 13: Linear Regression and Correlation

In multiple regression, a dummy variable can be included in a multiple regression model as

The following correlations were computed as part of a multiple regression analysis that used Education, job, and age to predict income. What is this table called?

The coeﬃcient of determination measures the proportion of

What is the proportion of the variation in salary accounted for by the set of independent variables?

It is thought that there are a variety of factors that affect a teacher's salary. Using the following Printout and sample data, determine whether the holding of a PhD degree is a signiﬁcant variable When tested at the 10% level of signiﬁcance.

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 are the degrees of freedom associated with the regression sum of squares?

What is the selling price of a house with 1,000 square feet? ______

What is the y- intercept (a)?

What Is Statistics

Describing Data: Frequencydistributions and Graphic Presentation

Describing Data: Numerical Measures

Describing Data: Displaying and Exploring Pata

A Sulvey of Probability Concepts

Discrete Probability Distributions

Continuous Probabilitydistributions

Sampling Methods and the Central Umit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two Sample Tests of Hypothesis

Analysis of Variance

Multiple Regression and Correlation Analysis

Chi-Square Applications

Decision Making and Payoff Tables in Investment Scenarios

Filters