Question 1

A qualitative variable such as gender can be included in regression analysis and is referred to as a dummy variable.

Accepted Answer

A) True 
 B)False

Question 2

Regression analysis results in the estimation equation log $\hat{ Y }$
 = 3.0 + 0.50 log x1 + 0.35 log x2 following data transformation.Transform this equation to the equivalent exponential model of the form $\hat{ Y }$
 = $b _ { 0 } x _ { 1 } ^ { b } 1 x _ { 2 } ^ { b _ { 2 } }$ .(The base of the logarithm is 10.) $\hat{ Y }$
 = ____________________

Accepted Answer

Question 3

Suppose that the estimated regression equation of a College of Business graduates is given by: $\hat{ Y }$ = 20,000 + 2000x + 1500D,where y is the starting salary,x is the grade point average and D is a dummy variable which takes the value of 1 if the student is a finance major and 0 if not.A hotel management major graduate with a 3.5 grade point average would have an average starting salary of:

Accepted Answer

A)  $22,000. 
B)  $27,000. 
C)  $28,500. 
D)  $20,000. 
A)  $22,000. 
B)  $27,000. 
C)  $28,500. 
D)  $20,000.

Question 4

A practical way to identify multicollinearity is to generate a standard deviation matrix.

Accepted Answer

A) True 
 B)False

Question 5

Economist
An economist is in the process of developing a model to predict the price of gold.She believes that the two most important variables are the price of a barrel of oil (xS1U1B11S1U1B0)and the interest rate (xS1U1B12S1U1B0).She proposes the first-order model with interaction $$y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 } + \epsilon$$ A random sample of 20 daily observations was taken.The computer output is shown below. The regression equation is:
$$y = 115.6 + 22.3 x _ { 1 } + 14.7 x _ { 2 } - 1.36 x _ { 1 } x _ { 2 }$$
$\begin{array}{|l|ccc|}
\hline \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } \
\hline \text { Constant } & 115.6 & 78.1 & 1.480 \
x_{1} & 22.3 & 7.1 & 3.141 \
x_{2} & 14.7 & 6.3 & 2.333 \
x_{1} x_{2} & -1.36 & 0.52 & -2.615 \
\hline
\end{array}$

$$\mathrm { S } = 20.9 \quad \mathrm { R } - \mathrm { Sq } = 55.4 \%$$
ANAL YSIS OF VARIANCE
$\begin{array}{|l|llll|}
\hline \text { Source of Variation } & \text { DF } & \text { SS } & \text { MS } & \text { F } \
\hline \text { Regression } & 3 & 8661 & 2887.0 & 6.626 \
\text { Error } & 16 & 6971 & 435.7 & \
\hline \text { Total } & 19 & 15632 & & \
\hline
\end{array}$

-Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained?
Test statistic = ____________________ = ____________________
Critical Value = ____________________
Conclusion: _______________________
Interpretation: __________________________________________________

Accepted Answer

t; -2.615; 2.921; Do

Question 6

In explaining the amount of money spent on children's toys each year,which of the following independent variables is best represented with a dummy variable?

Accepted Answer

A)  Age 
B)  Height 
C)  Gender 
D)  Weight 
A)  Age 
B)  Height 
C)  Gender 
D)  Weight

Question 7

The coefficient of determination R2 for the third-order polynomial model is always larger than R2 for the second-order polynomial model.

Accepted Answer

A) True 
 B)False

Question 8

Economist
An economist is in the process of developing a model to predict the price of gold.She believes that the two most important variables are the price of a barrel of oil (xS1U1B11S1U1B0)and the interest rate (xS1U1B12S1U1B0).She proposes the first-order model with interaction $$y = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 } + \epsilon$$ A random sample of 20 daily observations was taken.The computer output is shown below. The regression equation is:
$$y = 115.6 + 22.3 x _ { 1 } + 14.7 x _ { 2 } - 1.36 x _ { 1 } x _ { 2 }$$
$\begin{array}{|l|ccc|}
\hline \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } \
\hline \text { Constant } & 115.6 & 78.1 & 1.480 \
x_{1} & 22.3 & 7.1 & 3.141 \
x_{2} & 14.7 & 6.3 & 2.333 \
x_{1} x_{2} & -1.36 & 0.52 & -2.615 \
\hline
\end{array}$

$$\mathrm { S } = 20.9 \quad \mathrm { R } - \mathrm { Sq } = 55.4 \%$$
ANAL YSIS OF VARIANCE
$\begin{array}{|l|llll|}
\hline \text { Source of Variation } & \text { DF } & \text { SS } & \text { MS } & \text { F } \
\hline \text { Regression } & 3 & 8661 & 2887.0 & 6.626 \
\text { Error } & 16 & 6971 & 435.7 & \
\hline \text { Total } & 19 & 15632 & & \
\hline
\end{array}$

-Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of gold?
Test statistic = ____________________ = ____________________
Critical Value = ____________________
Conclusion: _________________________________
Interpretation: ______________________________________________________

Accepted Answer

F; 6.626; 3.24; Reje

Question 9

In regression analysis,qualitative variables are sometimes referred to as:

Accepted Answer

A)  response variables. 
B)  dummy variables. 
C)  nonsense variables. 
D)  dependent variables. 
A)  response variables. 
B)  dummy variables. 
C)  nonsense variables. 
D)  dependent variables.

Question 10

The estimated regression equation for a sample of 500 college professors is given by: $\hat { Y }$ = 275 - 3x - 2D,where y is retirement age,x is pre-retirement annual income (in $1000s),and D is a dummy variable that takes the value of 0 for female professors and 1 for male professors.Assume that there is a relationship between y,x and D.What is the average age of retirement for female professors with pre-retirement income of $68,500?
____________________ years

Accepted Answer

The answer of The estimated regression equation for a sample...

Question 11

Stepwise regression is an iterative procedure that:

Accepted Answer

A)  adds one independent variable at a time. 
B)  deletes one independent variable at a time. 
C)  adds one dependent variable at a time. 
D)  deletes one dependent variable at a time. 
E)  Both A and B are correct. 
A)  adds one independent variable at a time. 
B)  deletes one independent variable at a time. 
C)  adds one dependent variable at a time. 
D)  deletes one dependent variable at a time. 
E)  Both A and B are correct.

Question 12

When is it desirable to make use of stepwise regression technique?

Accepted Answer

The use of stepwise regression can reduc

Question 13

The estimated regression equation for a sample of 500 college professors is given by: $\hat{ Y }$
 = 275 - 3x - 2D,where y is retirement age,x is pre-retirement annual income (in $1000s),and D is a dummy variable that takes the value of 0 for female professors and 1 for male professors.Assume that there is a relationship between y,x and D.How does the average age at retirement for male professors change for each additional thousand dollars of pre-retirement income?
The average age at retirement ____________________ by ____________________ years

Accepted Answer

The answer of The estimated regression equation for a sample...

Question 14

The regression model $\hat{ Y }$ = 160 + 8x1 - 5x2 has been fitted to a set of data.If x2 = 20,what will be the effect on $\hat { Y }$ if x1 increases by 1 unit? 
$\hat { Y }$ will ____________________ by ____________________

Accepted Answer

Question 15

The model $\hat { Y }$ = b0 + b1x + b2x2 is referred to as a:

Accepted Answer

A)  simple linear regression model. 
B)  first order model with one predictor variable. 
C)  second order model with one predictor variable. 
D)  third order model with one predictor variable. 
A)  simple linear regression model. 
B)  first order model with one predictor variable. 
C)  second order model with one predictor variable. 
D)  third order model with one predictor variable.

Question 16

After data transformation,regression analysis results in the estimation equation: log $\hat{ Y }$
 = -0.25 + 0.15x.Transform this equation to the equivalent exponential model of the form 
$\hat{ Y }$
 = b0b1x.(The base of the logarithm is 10.) $\hat{ Y }$
 = ____________________

Accepted Answer

Question 17

What is multicollinearity?

Accepted Answer

Multicollinearity is a conditi

Question 18

In explaining the income earned by college graduates,which of the following independent variables is best represented by a dummy variable?

Accepted Answer

A)  Grade point average 
B)  Age 
C)  Number of years since graduating from high school 
D)  College major 
A)  Grade point average 
B)  Age 
C)  Number of years since graduating from high school 
D)  College major

Question 19

The regression model $\hat { Y }$ = 160 + 8x1 - 5x2 has been fitted to a set of data.Comment on whether interaction would appear to exist between x1 and x2?
Interaction: ____________________
Comments:

Accepted Answer

Interaction does not appear to

Question 20

Interaction between two predictor variables is present when the effect on E(y)of a 1-unit increase in $x _ { 2 }$ does not depend on the value of $x _ { 1 }$ ,and vice versa.

Accepted Answer

A) True 
 B)False

A qualitative variable such as gender can be included in regression analysis and is referred to as a dummy variable.

A practical way to identify multicollinearity is to generate a standard deviation matrix.

In explaining the amount of money spent on children's toys each year,which of the following independent variables is best represented with a dummy variable?

The coefficient of determination R² for the third-order polynomial model is always larger than R² for the second-order polynomial model.

In regression analysis,qualitative variables are sometimes referred to as:

Stepwise regression is an iterative procedure that:

When is it desirable to make use of stepwise regression technique?

The regression model $\hat{ Y }$ = 160 + 8x₁ - 5x₂ has been fitted to a set of data.If x₂ = 20,what will be the effect on $\hat { Y }$ if x₁ increases by 1 unit? $\hat { Y }$ will by

The model $\hat { Y }$ = b₀ + b₁x + b₂x² is referred to as a:

After data transformation,regression analysis results in the estimation equation: log $\hat{ Y }$ = -0.25 + 0.15x.Transform this equation to the equivalent exponential model of the form $\hat{ Y }$ = b₀b₁^x.(The base of the logarithm is 10.) $\hat{ Y }$ = ____________________

What is multicollinearity?

In explaining the income earned by college graduates,which of the following independent variables is best represented by a dummy variable?

The regression model $\hat { Y }$ = 160 + 8x₁ - 5x₂ has been fitted to a set of data.Comment on whether interaction would appear to exist between x₁ and x₂? Interaction: ____________________ Comments:

Interaction between two predictor variables is present when the effect on E(y)of a 1-unit increase in $x _ { 2 }$ does not depend on the value of $x _ { 1 }$ ,and vice versa.

A Preview of Business Statistics

Visual Description of Data

Statistical Description of Data

Data Collection and Sampling Methods

Probability: Review of Basic Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Distributions

Estimation From Sample Data

Hypothesis Tests Involving a Sample Mean or Proportion

Hypothesis Tests Involving Two Sample Means

Analysis of Variance Tests

Chi-Square Applications

Nonparametric Methods

Simple Linear Regression and Correlation

Multiple Regression and Correlation

Models for Time Series and Forecasting

Decision Theory

Total Quality Management

Filters

Exam 17: Model Building

A qualitative variable such as gender can be included in regression analysis and is referred to as a dummy variable.

A practical way to identify multicollinearity is to generate a standard deviation matrix.

In explaining the amount of money spent on children's toys each year,which of the following independent variables is best represented with a dummy variable?

The coefficient of determination R2 for the third-order polynomial model is always larger than R2 for the second-order polynomial model.

In regression analysis,qualitative variables are sometimes referred to as:

Stepwise regression is an iterative procedure that:

When is it desirable to make use of stepwise regression technique?

The regression model Y^\hat{ Y }Y^ = 160 + 8x1 - 5x2 has been fitted to a set of data.If x2 = 20,what will be the effect on Y^\hat { Y }Y^ if x1 increases by 1 unit? Y^\hat { Y }Y^ will ____________________ by ____________________

The model Y^\hat { Y }Y^ = b0 + b1x + b2x2 is referred to as a:

After data transformation,regression analysis results in the estimation equation: log Y^\hat{ Y }Y^ = -0.25 + 0.15x.Transform this equation to the equivalent exponential model of the form Y^\hat{ Y }Y^ = b0b1x.(The base of the logarithm is 10.) Y^\hat{ Y }Y^ = ____________________

What is multicollinearity?

In explaining the income earned by college graduates,which of the following independent variables is best represented by a dummy variable?

The regression model Y^\hat { Y }Y^ = 160 + 8x1 - 5x2 has been fitted to a set of data.Comment on whether interaction would appear to exist between x1 and x2? Interaction: ____________________ Comments:

Interaction between two predictor variables is present when the effect on E(y)of a 1-unit increase in x2x _ { 2 }x2​ does not depend on the value of x1x _ { 1 }x1​ ,and vice versa.

A Preview of Business Statistics

Visual Description of Data

Statistical Description of Data

Data Collection and Sampling Methods

Probability: Review of Basic Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Distributions

Estimation From Sample Data

Hypothesis Tests Involving a Sample Mean or Proportion

Hypothesis Tests Involving Two Sample Means

Analysis of Variance Tests

Chi-Square Applications

Nonparametric Methods

Simple Linear Regression and Correlation

Multiple Regression and Correlation

Models for Time Series and Forecasting

Decision Theory

Total Quality Management

Filters

The coefficient of determination R² for the third-order polynomial model is always larger than R² for the second-order polynomial model.

The regression model $\hat{ Y }$ = 160 + 8x₁ - 5x₂ has been fitted to a set of data.If x₂ = 20,what will be the effect on $\hat { Y }$ if x₁ increases by 1 unit? $\hat { Y }$ will by

The model $\hat { Y }$ = b₀ + b₁x + b₂x² is referred to as a:

After data transformation,regression analysis results in the estimation equation: log $\hat{ Y }$ = -0.25 + 0.15x.Transform this equation to the equivalent exponential model of the form $\hat{ Y }$ = b₀b₁^x.(The base of the logarithm is 10.) $\hat{ Y }$ = ____________________

The regression model $\hat { Y }$ = 160 + 8x₁ - 5x₂ has been fitted to a set of data.Comment on whether interaction would appear to exist between x₁ and x₂? Interaction: ____________________ Comments:

Interaction between two predictor variables is present when the effect on E(y)of a 1-unit increase in $x _ { 2 }$ does not depend on the value of $x _ { 1 }$ ,and vice versa.