Exam 15: Multiple Regression Analysis and Model Building

A multiple regression is shown for a data set of yachts where the dependent variable is the price in thousands of dollars. Given this information,which of the following is true regarding the slope coefficient for Age,where Age represents how many years old the yacht is?

The following output is for a second-order polynomial regression model where the independent variables are x and x² (x^2 in output).Some of the output has been omitted. Considering the above information,both independent variables in the model are considered statistically significant at the alpha = 0.05 level.

Consider the following residual plot. Given this plot,what conclusion should be reached?

In a study of employees at a local company,the human resource manager wants to develop a multiple regression model to explain the difference in employee wage rates.She is thinking of including a variable,degree status,in which the following categories exist: no degree,H.S.degree,junior college degree,bachelor degree,graduate degree.One appropriate approach for including this variable is to code the categories 1,2,3,4,and 5.

A useful method for determining whether a linear function is the appropriate function to describe the relationship between the x and y variable is a residual plot in which the residuals are plotted on the vertical axis and the independent variable is on the horizontal axis.

Consider the following scatter plot: Given the apparent relationship between the x and y variable,a possible curvilinear regression model to consider would be a second-order polynomial model.

Multicollinearity occurs when one or more independent variables is highly correlated with the dependent variable.

In a forward selection stepwise regression process,the first variable to be selected will be the variable that can,by itself,do the most to explain the variation in the dependent variable.This will be the variable that provided the highest possible R-square value by itself.

A forecasting model of the following form was developed: y = B₀ + B₁x_j + B₂ + B₃ + ε Which of the following best describes the form of this model?

The editors of a national automotive magazine recently studied 30 different automobiles sold in the United States with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway miles per gallon.A number of different independent variables were collected.The following regression output (with some values missing)was recently presented to the editors by the magazine's analysts: Based on this output and your understanding of multiple regression analysis,what is the critical value for testing the significance of the overall regression model at a 0.05 level of statistical significance?

The assumption that the errors or residuals are independent is best checked by:

In multiple regression analysis,the model will be developed with one dependent variable and two or more independent variables.