Exam 14: Building Multiple Regression Models

Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals that the first independent variable that will be entered into the regression model by the forward selection procedure will be ___.

A multiple regression analysis produced the following tables: For x₁= 10,the predicted value of y is ___.

A multiple regression analysis produced the following tables: Using $\alpha$ = 0.10 to test the null hypothesis H₀: $\beta$ ₂ = 0,the critical t value is ___.

A logarithmic transformation may be applied to both positive and negative numbers.

Abby Kratz,a market specialist at the market research firm of Saez,Sikes,and Spitz,is analyzing household budget data collected by her firm.Abby's dependent variable is monthly household expenditures on groceries (in $'s),and her independent variables are annual household income (in $1,000's)and household neighbourhood (0 = suburban,1 = rural).Regression analysis of the data yielded the following table: For two households,one suburban and one rural,Abby's model predicts ___.

Hope Hernandez,Marketing Manager of People's Pharmacy,Inc. ,wants a regression model to predict sales in the greeting card department.Her data set includes two qualitative variables: the pharmacy neighbourhood (urban,suburban,and rural),and lighting level in the greeting card department (soft,medium,and bright).The number of dummy variables needed for "lighting level" in Hope's regression model is ___.

If a square transformation is applied to a series of positive numbers greater than 1,the numerical values of the numbers in the transformed series will be smaller than the corresponding numbers in the original series.

Yvonne Yang,VP of Finance at Discrete Components,Inc.(DCI),wants a regression model which predicts the average collection period on credit sales.Her data set includes two qualitative variables: sales discount rates (0%,2%,4%,and 6%),and total assets of credit customers (small,medium,and large).The number of dummy variables needed for "sales discount rate" in Yvonne's regression model is ___.

The following scatter plot indicates that ___.

The following scatter plot indicates that ___.

If a square root transformation is applied to a series of positive numbers greater than 1,the numerical values of the numbers in the transformed series will be smaller than the corresponding numbers in the original series.

If a qualitative variable has c categories,then c dummy variables must be included in the regression model,one for each category.

Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals potential multicollinearity with variables ___.

Large correlations between two or more independent variables in a multiple regression model could result in the problem of ___.

A multiple regression analysis produced the following tables: The regression equation for this analysis is ___.

If two or more independent variables are highly correlated,the regression analysis might suffer from the problem of multicollinearity.

A multiple regression analysis produced the following tables: For x₁= 20,the predicted value of y is ___.

If a qualitative variable has 4 categories,how many dummy variables must be created and used in the regression analysis?

Inspection of the following table of correlation coefficients for variables in a multiple regression analysis reveals potential multicollinearity with variables ___.

An acceptable method of managing multicollinearity in a regression model is to ___.