Question 1

Determine the price that an individual has to pay for a 3 bedroom,1,000 square foot house that is located three miles away from the beach.

Accepted Answer

A) $201,422 
B) $177,243 
C) $243,850 
D) $229,198 
A) $201,422 
B) $177,243 
C) $243,850 
D) $229,198

Question 2

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.The officer used Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars),XS1U1B11S1U1B0S1U1B1 S1U1B0is the number of loans,XS1U1B12S1U1B0 is the interest rate,and XS1U1B13S1U1B0 is the dollar value of expenditures of the bank on advertising (in thousands of dollars).Using data from the past 24 months,she obtained the following results:   
= 5.7 + 0.189xS1U1B11S1U1B0 - 1.3xS1U1B12S1U1B0 + 0.08xS1U1B13S1U1B0,   
= 3.2,   
= 0.03,   
= 0.062,   
= 0.17,RS1U1P12S1S1P0S1U1P1 S1S1P0= 0.46,and adjusted   
= 0.41.
-What should the null and alternative hypotheses be for β3?

Accepted Answer

A) H0 : β3 = 0, H1 : β3 > 0 
B) H0 : β3 = 0, H1 : β3 0 : β3 ≠ 0, H1 : β3 = 0 
D) H0 : β3 > 0, H1 : β3 ≠ 0 
A) H0 : β3 = 0, H1 : β3 > 0 
B) H0 : β3 = 0, H1 : β3 0 : β3 ≠ 0, H1 : β3 = 0 
D) H0 : β3 > 0, H1 : β3 ≠ 0

Question 3

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A loan officer is interested in examining the determinants of the total dollar value of residential loans made during a month.She used Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + βS1U1B14S1U1B0
S1U1B1 S1U1B0
   
+ ε to model the relationship,where Y is the total dollar value of residential loans in a month (in millions of dollars),XS1U1B11S1U1B0S1U1B1 S1U1B0is the number of loans,XS1U1B12S1U1B0 is the interest rate,and XS1U1B13S1U1B0 is the dollar value of expenditures of the bank on advertising (in thousands of dollars).Suppose that by using data from the past 24 months,she obtained   
= 3.8 + 0.23xS1U1B11S1U1B0 - 1.31xS1U1B12S1U1B0 + 0.032xS1U1B13S1U1B0 - 0.0005   
.
-What do these results suggest about the relationship between the total loan amount and number of loans?

Accepted Answer

A) As the number of loans increases,the total loan amount at first decreases,then increases. 
B) As the number of loans increases,the total loan amount also increases. 
C) As the number of loans increases,the total loan amount at first increases,then decreases. 
D) As the number of loans increases,the total loan amount decreases at a decreasing rate. 
A) As the number of loans increases,the total loan amount at first decreases,then increases. 
B) As the number of loans increases,the total loan amount also increases. 
C) As the number of loans increases,the total loan amount at first increases,then decreases. 
D) As the number of loans increases,the total loan amount decreases at a decreasing rate.

Question 4

A multiple regression model has the form:   = 3.25 + 2.5x1 + 1.5x2.If x2 increases by 1 unit,holding x1 constant,the value of y will increase on average by:

Accepted Answer

A) 3.25 units. 
B) 2.5 units. 
C) 1.5 units. 
D) 7.25 units. 
A) 3.25 units. 
B) 2.5 units. 
C) 1.5 units. 
D) 7.25 units.

Question 5

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The data set shown below gives the information to model a regression that predicts the percent profit margin.
Y = annual profit margin
XS1U1B11 S1U1B0= Year
XS1U1B12S1U1B0 = net annual revenue per deposit dollar
XS1U1B13S1U1B0 = number of savings and loan offices for that year
  
-What is the value of b0?

Accepted Answer

A) 1.2432 
B) 0.2432 
C) 0.2003 
D) 0.8514 
A) 1.2432 
B) 0.2432 
C) 0.2003 
D) 0.8514

Question 6

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
An estimated linear model is given by   
= 12 - 3xS1U1B11S1U1B0 - 4xS1U1B12S1U1B0 + 7xS1U1B13S1U1B0.
-When x1 increases by 5,what is the change in   
?

Accepted Answer

With x₂ and x₃ held co

Question 7

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
As director of the local tourist board,you are interested in determining the factors that influence the hotel occupancy rate in your city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.You develop the following model: Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + βS1U1B14S1U1B0XS1U1B14S1U1B0 + ε,where Y is the hotel occupancy rate,XS1U1B11S1U1B0 is the total number of passengers arriving at the airport,XS1U1B12S1U1B0 is a price index of local hotel room rates,XS1U1B13S1U1B0 is the consumer confidence index,and XS1U1B14S1U1B0 is a dummy variable = 1 during the months of June,July,and August.You look at data from the past 36 months and obtain the following results:   
= 67.1 + 0.02xS1U1B11S1U1B0 - 0.055xS1U1B12S1U1B0 + 0.08xS1U1B13S1U1B0 + 12.3xS1U1B14S1U1B0,RS1U1P12S1S1P0 = 0.67,   
= 58.3,   
= 0.008,   
= 0.01,   
= 0.06,   
= 4.7,and SSE = 576.
-Test the hypothesis H0 : β2 = 0 and interpret your results.

Accepted Answer

t = @#IMG-DLM& 
(j = 1,2,... ,K)
t = @#IMG-DLM& 
= -5.5
Sinc

Question 8

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose you are interested in determining the factors that influence the time required to prepare a tax return,and developed the model: Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + βS1U1B14S1U1B0XS1U1B14S1U1B0 + ε,where Y is the amount of time (in minutes),XS1U1B11S1U1B0 is the income of the individual (in thousands of dollars),XS1U1B12S1U1B0 is the age of the individual,XS1U1B13S1U1B0 is the number of people living in the household,and XS1U1B14S1U1B0 is a dummy variable that takes the value 1,if the individual owns his or her own home.After interviewing 40 accountants,you get the following results:   
= 17.2 + 3.8xS1U1B11S1U1B0 - 1.04xS1U1B12S1U1B0 + 2.15xS1U1B13S1U1B0 + 15.1xS1U1B14S1U1B0,   
= 5.3,   
= 0.13,   
= 0.33,   
= 1.51,   
= 4.7,SSR = 164.2,SSE = 200.7,and RS1U1P12S1S1P0 = 0.45.
-How long would we expect to prepare a return for a 35-year old renter who earns $40,000 and has a total of three people living in the same house?

Accepted Answer

@#IMG-DLM& = 17.2 + 3.8x₁ + 1.04x₂ + 2.15

Question 9

Which of the following is the value of the F-test statistic?

Accepted Answer

A) 6.00 
B) 0.0018 
C) 0.011 
D) 9.26 
A) 6.00 
B) 0.0018 
C) 0.011 
D) 9.26

Question 10

If an additional variable,however irrelevant,is added to a multiple regression model,what is the most likely result?

Accepted Answer

A) a smaller sum of squared errors 
B) a larger sum of squared errors 
C) a constant sum of squared errors 
D) a smaller regression sum of squares 
A) a smaller sum of squared errors 
B) a larger sum of squared errors 
C) a constant sum of squared errors 
D) a smaller regression sum of squares

Question 11

The regressions Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε and Y = β0 + β1X1 + β2X2 + ε were run using a sample of 30 observations.The SSE for the first regression is 298.4 and 382.3 for the second regression.Test H0 : β3 = β4 = 0.

Accepted Answer

A) Reject H0 at α = 0.05 
B) Reject H0 at α = 0.025 
C) Reject H0 at α = 0.01 
D) Fail to reject H0 at α < 0.10 
A) Reject H0 at α = 0.05 
B) Reject H0 at α = 0.025 
C) Reject H0 at α = 0.01 
D) Fail to reject H0 at α < 0.10

Question 12

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The computer output for the multiple regression model,y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + ε is shown below.However,because of a printer malfunction some of the results are not shown.These are identified by asterisks.
   
S = * R-Sq = *
ANALYSIS OF VARIANCE
  
-Calculate the standard error for the coefficient,b1.

Accepted Answer

t₁ = @#IMG-DLM& 1.25

Question 13

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
As director of the local tourist board,you are interested in determining the factors that influence the hotel occupancy rate in your city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.You develop the following model: Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + βS1U1B14S1U1B0XS1U1B14S1U1B0 + ε,where Y is the hotel occupancy rate,XS1U1B11S1U1B0 is the total number of passengers arriving at the airport,XS1U1B12S1U1B0 is a price index of local hotel room rates,XS1U1B13S1U1B0 is the consumer confidence index,and XS1U1B14S1U1B0 is a dummy variable = 1 during the months of June,July,and August.You look at data from the past 36 months and obtain the following results:   
= 67.1 + 0.02xS1U1B11S1U1B0 - 0.055xS1U1B12S1U1B0 + 0.08xS1U1B13S1U1B0 + 12.3xS1U1B14S1U1B0,RS1U1P12S1S1P0 = 0.67,   
= 58.3,   
= 0.008,   
= 0.01,   
= 0.06,   
= 4.7,and SSE = 576.
-Calculate the total sum of squares.

Accepted Answer

R² = 1 - @#IMG-DLM&

Question 14

Which of the following formulas would you use to calculate the multiple coefficient of determination?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 15

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor investigated some of the factors that affect an individual student's final grade in his course.He proposed the multiple regression model Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0 + βS1U1B13S1U1B0XS1U1B13S1U1B0 + ε ,where Y is the final mark (out of 100),XS1U1B11S1U1B0 is the number of lectures skipped,XS1U1B12S1U1B0 is the number of late assignments,and XS1U1B13S1U1B0 is the mid-term test mark (out of 100).The professor recorded the data for 50 randomly selected students.The computer output is shown below.
The regression equation is   
= 41.6 - 3.18xS1U1B11S1U1B0 - 1.17xS1U1B12S1U1B0 + 0.63xS1U1B13S1U1B0.
   
S = 13.74 R-Sq = 30.0%
ANALYSIS OF VARIANCE
  
-Interpret the coefficient b3.

Accepted Answer

The coefficient b₃= 0.63.This tells us th

Question 16

Multiple regression coefficients are conditional coefficients;that is,the estimated coefficient bi depends on the other variables included in the model.

Accepted Answer

A) True 
 B)False

Question 17

The coefficient of determination cannot be negative.

Accepted Answer

A) True 
 B)False

Question 18

On an average,how much would we expect a 5-member household with a monthly income of $2,100 to spend on groceries? Assume that only one of the adults is working.

Accepted Answer

A) $215.30 
B) $481.60 
C) $172.10 
D) $438.40 
A) $215.30 
B) $481.60 
C) $172.10 
D) $438.40

Question 19

For each x term in the multiple regression equation,the corresponding β is referred to as a partial regression coefficient.

Accepted Answer

A) True 
 B)False

Question 20

A multiple regression model involves 10 independent variables and 30 observations.If we want to test at the 5% significance level the parameter β4,the critical value will be:

Accepted Answer

A) 1.697 
B) 2.093 
C) 2.228 
D) 1.729 
A) 1.697 
B) 2.093 
C) 2.228 
D) 1.729

Determine the price that an individual has to pay for a 3 bedroom,1,000 square foot house that is located three miles away from the beach.

A multiple regression model has the form: = 3.25 + 2.5x₁ + 1.5x₂.If x₂ increases by 1 unit,holding x₁ constant,the value of y will increase on average by:

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: An estimated linear model is given by = 12 - 3x₁ - 4x₂ + 7x₃. -When x₁ increases by 5,what is the change in ?

Which of the following is the value of the F-test statistic?

If an additional variable,however irrelevant,is added to a multiple regression model,what is the most likely result?

The regressions Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + ε and Y = β₀ + β₁X₁ + β₂X₂ + ε were run using a sample of 30 observations.The SSE for the first regression is 298.4 and 382.3 for the second regression.Test H₀ : β₃= β₄= 0.

Which of the following formulas would you use to calculate the multiple coefficient of determination?

Multiple regression coefficients are conditional coefficients;that is,the estimated coefficient b_i depends on the other variables included in the model.

The coefficient of determination cannot be negative.

On an average,how much would we expect a 5-member household with a monthly income of $2,100 to spend on groceries? Assume that only one of the adults is working.

For each x term in the multiple regression equation,the corresponding β is referred to as a partial regression coefficient.

A multiple regression model involves 10 independent variables and 30 observations.If we want to test at the 5% significance level the parameter β₄,the critical value will be:

Describing Data: Graphical

Describing Data: Numerical

Probability

Discrete Random Variables and Probability Distributions

Continuous Random Variables and Probability Distributions

Sampling and Sampling Distributions

Estimation: Single Population

Estimation: Additional Topics

Hypothesis Testing: Single Population

Hypothesis Testing: Additional Topics

Simple Regression

Additional Topics in Regression Analysis

Analysis of Categorical Data

Analysis of Variance

Time-Series Analysis and Forecasting

Additional Topics in Sampling

Filters

Exam 12: Multiple Regression

Determine the price that an individual has to pay for a 3 bedroom,1,000 square foot house that is located three miles away from the beach.

A multiple regression model has the form: = 3.25 + 2.5x1 + 1.5x2.If x2 increases by 1 unit,holding x1 constant,the value of y will increase on average by:

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: An estimated linear model is given by = 12 - 3x1 - 4x2 + 7x3. -When x1 increases by 5,what is the change in ?

Which of the following is the value of the F-test statistic?

If an additional variable,however irrelevant,is added to a multiple regression model,what is the most likely result?

The regressions Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε and Y = β0 + β1X1 + β2X2 + ε were run using a sample of 30 observations.The SSE for the first regression is 298.4 and 382.3 for the second regression.Test H0 : β3 = β4 = 0.

Which of the following formulas would you use to calculate the multiple coefficient of determination?

Multiple regression coefficients are conditional coefficients;that is,the estimated coefficient bi depends on the other variables included in the model.

The coefficient of determination cannot be negative.

On an average,how much would we expect a 5-member household with a monthly income of $2,100 to spend on groceries? Assume that only one of the adults is working.

For each x term in the multiple regression equation,the corresponding β is referred to as a partial regression coefficient.

A multiple regression model involves 10 independent variables and 30 observations.If we want to test at the 5% significance level the parameter β4,the critical value will be:

Describing Data: Graphical

Describing Data: Numerical

Probability

Discrete Random Variables and Probability Distributions

Continuous Random Variables and Probability Distributions

Sampling and Sampling Distributions

Estimation: Single Population

Estimation: Additional Topics

Hypothesis Testing: Single Population

Hypothesis Testing: Additional Topics

Simple Regression

Additional Topics in Regression Analysis

Analysis of Categorical Data

Analysis of Variance

Time-Series Analysis and Forecasting

Additional Topics in Sampling

Filters

A multiple regression model has the form: = 3.25 + 2.5x₁ + 1.5x₂.If x₂ increases by 1 unit,holding x₁ constant,the value of y will increase on average by:

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: An estimated linear model is given by = 12 - 3x₁ - 4x₂ + 7x₃. -When x₁ increases by 5,what is the change in ?

The regressions Y = β₀ + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + ε and Y = β₀ + β₁X₁ + β₂X₂ + ε were run using a sample of 30 observations.The SSE for the first regression is 298.4 and 382.3 for the second regression.Test H₀ : β₃= β₄= 0.

Multiple regression coefficients are conditional coefficients;that is,the estimated coefficient b_i depends on the other variables included in the model.

A multiple regression model involves 10 independent variables and 30 observations.If we want to test at the 5% significance level the parameter β₄,the critical value will be: