Question 1

The estimated standard deviation of the slope coefficients is influenced inversely by the standard error of the model.

Accepted Answer

A) True 
 B)False

Question 2

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A market researcher is interested in the average amount of money spent per year by college students on clothing.From 25 years of annual data,the following estimated regression was obtained through least squares:
yS1U1B1tS1U1B0 = 48.75 +   
+   
+   
where the numbers in parentheses below the coefficients are the coefficient standard errors,and
y = Expenditure per student,in dollars,on clothes
xS1U1B11S1U1B0 = Disposable income per student,in dollars,after the payment of tuition,fees,and room and board.
xS1U1B12S1U1B0 = Index of advertising,aimed at the student market,on clothes
-Why is the use of dummy variables and multiple regression important in experimental design?

Accepted Answer

Applications of experimental design have

Question 3

Suppose you are interested in modeling the amount of money a firm spends on marketing their product.In order to have your results be of interest to a wide audience,you collect data from a variety of firms ranging from those who spend quite little on advertising to those that spend quite a bit.If you model advertising expenditures as a function of gross sales,your results might be subject to:

Accepted Answer

A) autocorrelation. 
B) heteroscedasticity. 
C) multicollinearity. 
D) specification bias. 
A) autocorrelation. 
B) heteroscedasticity. 
C) multicollinearity. 
D) specification bias.

Question 4

Which of the following is considered one of the most common concerns with time-series data?

Accepted Answer

A) heteroscedasticity 
B) autocorrelation 
C) multicollinearity 
D) specification bias 
A) heteroscedasticity 
B) autocorrelation 
C) multicollinearity 
D) specification bias

Question 5

If omitted variables are uncorrelated with the other independent variables,a bias in the estimation of coefficients occurs.

Accepted Answer

A) True 
 B)False

Question 6

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following model: Y = βS1U1B10S1U1B0 + βS1U1B11S1U1B0XS1U1B11S1U1B0S1U1B1tS1U1B0 + βS1U1B12S1U1B0XS1U1B12S1U1B0S1U1B1tS1U1B0 + γYS1U1B1tS1U1B0S1U1B1-1S1U1B0.Suppose we increase XS1U1B11S1U1B0 by one unit in time period t,with all other independent variables in the model held fixed.
-What is the total expected increase in the dependent variable over time period t and all future time periods?

Accepted Answer

A) β1 / (1 - γYt-1) 
B) 1 / (1 - γ) 
C) β1 / (1 - γ) 
D) (1 - γβ1)/ (1 - γ)t 
A) β1 / (1 - γYt-1) 
B) 1 / (1 - γ) 
C) β1 / (1 - γ) 
D) (1 - γβ1)/ (1 - γ)t

Question 7

Calculate the dU value when k = 5,n = 17,and α is taken to be 0.01

Accepted Answer

A) 5.85 
B) 1.85 
C) 1.63 
D) 2.37 
A) 5.85 
B) 1.85 
C) 1.63 
D) 2.37

Question 8

________ occurs when errors are not independently distributed.

Accepted Answer

A) Linearity 
B) Multicollinearity 
C) Autocorrelation 
D) Heteroscedasticity 
A) Linearity 
B) Multicollinearity 
C) Autocorrelation 
D) Heteroscedasticity

Question 9

In reference to the Durbin-Watson statistic d and the critical values dLand dυ,which of the following statements is false?

Accepted Answer

A) If d L,we conclude that positive first-order autocorrelation exists 
B) If d > dU,we conclude that there is not enough evidence to show that positive first-order autocorrelation exists 
C) If d > 4 - dL,we conclude that there is negative autocorrelation. 
D) If d lies in between dL and dU,we conclude that there is no evidence of first-order autocorrelation. 
A) If d L,we conclude that positive first-order autocorrelation exists 
B) If d > dU,we conclude that there is not enough evidence to show that positive first-order autocorrelation exists 
C) If d > 4 - dL,we conclude that there is negative autocorrelation. 
D) If d lies in between dL and dU,we conclude that there is no evidence of first-order autocorrelation.

Question 10

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting a new car dealership to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).
  
-Estimate the value of y when x = 45 using the estimated linear regression equation of the form   
.

Accepted Answer

The answer of THE NEXT QUESTIONS ARE BASED ON THE...

Question 11

Which of the following can cause specification bias in a regression model?

Accepted Answer

A) omission of variables uncorrelated to the independent variables 
B) omission of variables correlated to the independent variables 
C) inclusion of autocorrelated variables 
D) inclusion of an error term 
A) omission of variables uncorrelated to the independent variables 
B) omission of variables correlated to the independent variables 
C) inclusion of autocorrelated variables 
D) inclusion of an error term

Question 12

Models in which the error terms do not all have the same variance are said to exhibit heteroscedasticity.

Accepted Answer

A) True 
 B)False

Question 13

Consider the regression model   = 50 + 25x1 - 7x2 - 6x1x2.A 1-unit increase in x2,while holding x1 constant at a value of 3,decreases the value of y,on average,by:

Accepted Answer

A) 13 
B) 25 
C) 33 
D) an amount that depends on the value of x2 
A) 13 
B) 25 
C) 33 
D) an amount that depends on the value of x2

Question 14

Which of the following is expected to occur in multiple regression analysis if an important variable is omitted from the list of independent variables?

Accepted Answer

A) It will lead to unbiased least squares estimators. 
B) It will lead to biased least squares estimators. 
C) It will lead to biased estimators of the variance. 
D) It will lead to multicollinearity between predictor variables. 
A) It will lead to unbiased least squares estimators. 
B) It will lead to biased least squares estimators. 
C) It will lead to biased estimators of the variance. 
D) It will lead to multicollinearity between predictor variables.

Question 15

When computing the Durbin-Watson statistic,what value will the sample estimate,r,have if the errors are not autocorrelated?

Accepted Answer

A) 0 
B) 1 
C) < 0 
D) 2 
A) 0 
B) 1 
C) < 0 
D) 2

Question 16

Suppose we estimate the following regression using 48 months of data: Yt = β0 + β1X1t + β2X2t + β3X3t + β4X4t + εt
Using the residuals from this regression,we run another regression of  
On the predicted values  
t. From this regression we get an R2 of 0.14.Let H0 be that there is no heteroscedasticity.What can you conclude?

Accepted Answer

A) Reject H0 at α = 0.05,but not 0.025 
B) Reject H0 at α = 0.01,but not 0.005 
C) Reject H0 at α = 0.005 
D) Unable to reject H0 at α ≤ 0.10 
A) Reject H0 at α = 0.05,but not 0.025 
B) Reject H0 at α = 0.01,but not 0.005 
C) Reject H0 at α = 0.005 
D) Unable to reject H0 at α ≤ 0.10

Question 17

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In a regression based on 35 annual observations,U.S.farm income was related to four independent variables- grain exports,federal government subsidies,population,and a dummy variable for bad weather years.The model was fitted by least squares,resulting in a Durbin-Watson statistic of 1.34.The regression of   
on   
S1U1B1iS1U1B0 yielded a coefficient of determination of 0.036.
-Test the model for autocorrelated errors.

Accepted Answer

The appropriate null and alternative hyp

Question 18

If a categorical independent variable,such as gender,contains exactly two categories,then how many dummy variable(s)will be needed to uniquely represent these categories?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 19

Consider the regression model   = 20 + 8x1 + 5x2 + 3x1x2.Which combination of x1 and x2,respectively,results in the largest average value of y?

Accepted Answer

A) 3 and 5 
B) 5 and 3 
C) 6 and 3 
D) 3 and 6 
A) 3 and 5 
B) 5 and 3 
C) 6 and 3 
D) 3 and 6

Question 20

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting a new car dealership to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).
  
-Determine if there is sufficient evidence at the 5% significance level to infer that the relationship between x and y is significant.

Accepted Answer

H₀ : β₁ = 0 vs.H₁ : β₁ ≠ 0 Test statistic: t

The estimated standard deviation of the slope coefficients is influenced inversely by the standard error of the model.

Which of the following is considered one of the most common concerns with time-series data?

If omitted variables are uncorrelated with the other independent variables,a bias in the estimation of coefficients occurs.

Calculate the d_U value when k = 5,n = 17,and α is taken to be 0.01

________ occurs when errors are not independently distributed.

In reference to the Durbin-Watson statistic d and the critical values d_Land d_υ,which of the following statements is false?

Which of the following can cause specification bias in a regression model?

Models in which the error terms do not all have the same variance are said to exhibit heteroscedasticity.

Consider the regression model = 50 + 25x₁ - 7x₂ - 6x₁x₂.A 1-unit increase in x₂,while holding x₁ constant at a value of 3,decreases the value of y,on average,by:

Which of the following is expected to occur in multiple regression analysis if an important variable is omitted from the list of independent variables?

When computing the Durbin-Watson statistic,what value will the sample estimate,r,have if the errors are not autocorrelated?

If a categorical independent variable,such as gender,contains exactly two categories,then how many dummy variable(s)will be needed to uniquely represent these categories?

Consider the regression model = 20 + 8x₁ + 5x₂ + 3x₁x₂.Which combination of x₁ and x₂,respectively,results in the largest average value of y?

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

Multiple Regression

Analysis of Categorical Data

Analysis of Variance

Time-Series Analysis and Forecasting

Additional Topics in Sampling

Filters

Exam 13: Additional Topics in Regression Analysis

The estimated standard deviation of the slope coefficients is influenced inversely by the standard error of the model.

Which of the following is considered one of the most common concerns with time-series data?

If omitted variables are uncorrelated with the other independent variables,a bias in the estimation of coefficients occurs.

Calculate the dU value when k = 5,n = 17,and α is taken to be 0.01

________ occurs when errors are not independently distributed.

In reference to the Durbin-Watson statistic d and the critical values dLand dυ,which of the following statements is false?

Which of the following can cause specification bias in a regression model?

Models in which the error terms do not all have the same variance are said to exhibit heteroscedasticity.

Consider the regression model = 50 + 25x1 - 7x2 - 6x1x2.A 1-unit increase in x2,while holding x1 constant at a value of 3,decreases the value of y,on average,by:

Which of the following is expected to occur in multiple regression analysis if an important variable is omitted from the list of independent variables?

When computing the Durbin-Watson statistic,what value will the sample estimate,r,have if the errors are not autocorrelated?

If a categorical independent variable,such as gender,contains exactly two categories,then how many dummy variable(s)will be needed to uniquely represent these categories?

Consider the regression model = 20 + 8x1 + 5x2 + 3x1x2.Which combination of x1 and x2,respectively,results in the largest average value of y?

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

Multiple Regression

Analysis of Categorical Data

Analysis of Variance

Time-Series Analysis and Forecasting

Additional Topics in Sampling

Filters

Calculate the d_U value when k = 5,n = 17,and α is taken to be 0.01

In reference to the Durbin-Watson statistic d and the critical values d_Land d_υ,which of the following statements is false?

Consider the regression model = 50 + 25x₁ - 7x₂ - 6x₁x₂.A 1-unit increase in x₂,while holding x₁ constant at a value of 3,decreases the value of y,on average,by:

Consider the regression model = 20 + 8x₁ + 5x₂ + 3x₁x₂.Which combination of x₁ and x₂,respectively,results in the largest average value of y?