Exam 14: Building Multiple Regression Models

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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 weekly household expenditures on groceries (in $'s),and her independent variables are annual household income (in $1,000's)and household neighborhood (0 = suburban,1 = rural).Regression analysis of the data yielded the following table. 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 weekly household expenditures on groceries (in  For a suburban household with ______ annual income,Abby's model predicts weekly grocery expenditure of $235.s),and her independent variables are annual household income (in $1,000's)and household neighborhood (0 = suburban,1 = rural).Regression analysis of the data yielded the following table.   For a suburban household with ______ annual income,Abby's model predicts weekly grocery expenditure of $235. For a suburban household with ______ annual income,Abby's model predicts weekly grocery expenditure of $235.

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A multiple regression analysis produced the following tables. A multiple regression analysis produced the following tables.     For x<sub>1</sub>= 20,the predicted value of y is ____________. A multiple regression analysis produced the following tables.     For x<sub>1</sub>= 20,the predicted value of y is ____________. For x1= 20,the predicted value of y is ____________.

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An appropriate method to identify multicollinearity in a regression model is to ____.

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The following scatter plot indicates that _________. The following scatter plot indicates that _________.

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Hope Hernandez is the new regional Vice President for a large gasoline station chain.She wants a regression model to predict sales in the convenience stores. Her data set includes two qualitative variables: the gasoline station location (inner city,freeway,and suburbs),and curb appeal of the convenience store (low,medium,and high).The number of dummy variables needed for "curb appeal" in Hope's regression model is ______.

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A useful technique in controlling multicollinearity involves the _________.

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Alan Bissell,a market analyst for City Sound Online Mart,is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's),and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3,1 = other).Regression analysis of the data yielded the following tables. Alan Bissell,a market analyst for City Sound Online Mart,is analyzing sales from heavy metal song downloads.Alan's dependent variable is annual heavy metal song download sales (in $1,000,000's),and his independent variables are website visitors (in 1,000's)and type of download format requested (0 = MP3,1 = other).Regression analysis of the data yielded the following tables.   For a 'other' download formats with 10,000 website visitors,Alan's model predicts annual sales of heavy metal song downloads of ________________. For a 'other' download formats with 10,000 website visitors,Alan's model predicts annual sales of heavy metal song downloads of ________________.

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Recoding data cannot improve the fit of a regression model.

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Which of the following problems is not caused by multicollinearity?

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An "all possible regressions" search of a data set containing 5 independent variables will produce ______ regressions.

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A multiple regression analysis produced the following tables. A multiple regression analysis produced the following tables.     For x<sub>1</sub>= 10,the predicted value of y is ____________. A multiple regression analysis produced the following tables.     For x<sub>1</sub>= 10,the predicted value of y is ____________. For x1= 10,the predicted value of y is ____________.

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

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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 ___________. 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 ___________.

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A multiple regression analysis produced the following tables. A multiple regression analysis produced the following tables.     The minimum value of the predicted value of the dependent variable is reached when X<sub>1</sub> = ______. A multiple regression analysis produced the following tables.     The minimum value of the predicted value of the dependent variable is reached when X<sub>1</sub> = ______. The minimum value of the predicted value of the dependent variable is reached when X1 = ______.

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Qualitative data can be incorporated into linear regression models using indicator variables.

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