Exam 21: Building Multiple Regression Models

Consider the following to answer the question(s) below: A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). The following multiple regression model was fit to the data. -The estimated regression model is

Consider the following to answer the question(s) below: A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). The following multiple regression model was fit to the data. -The correct interpretation of the regression coefficient of Union is

Consider the following to answer the question(s) below: A Toronto accounting firm estimated a model to explain variation in client profitability. The dependent variable is client net profits and the predictor variables include the hours spent working on the client and indicator variables to denote the type of client-manufacturing, service, or government. The indicator variables have a value of one if the client is the type described. The following are the model results. -At α = 0.05, which of the following statements is correct?

What does the scatterplot of these data (shown below) suggest?

A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). Below are the multiple regression results. a. Write out the estimated regression equation. b. Are all of the independent variables significant in this regression equation (using α = 0 .05)? Explain. c. Interpret the coefficient of the Union. d. Based on the scatterplot below, do you think using Union as an indicator variable in this model is appropriate? Explain. e. An alternative multiple regression model is fit to these data and the results are shown below. Which model is better? Explain. f. Using the better model, predict the annual average bonus for a company with 7500 employees that are not unionized.

Using this model, the predicted turnover rate for a firm in the financial services sector with 1000 employees, an innovativeness index of 50, and 2% job growth rate is

A regression equation that predicts the price of homes in thousands of dollars is t = 24.6 + 0.055x1 - 3.6x2, where x2 is an indicator variable that represents whether the house is on a busy street (1 = yes, 0 = no). Based on this information, which of the following statements is true?

A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0). Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture). Below are the multiple regression results. a. Write out the estimated regression equation. b. Are all of the independent variables significant in this regression equation (using α = 0.05)? Explain. c. Interpret the coefficient of the Industry. d. An alternative multiple regression model is fit to these data and the results are shown below. Which model is better? Explain. e. Based on the scatterplot below, is it appropriate to use Industry as an indicator variable in this regression model? Explain. f. Using the better model, predict turnover rate for a firm in the financial services sector with 1000 employees, an innovative index of 50 and 2% job growth rate.

Consider the following to answer the question(s) below: A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0). Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture). Below are the multiple regression results. -Which of the following independent variables are significant in this regression equation at α = 0.05?

Consider the following to answer the question(s) below: An alternative multiple regression model is fit to the data on the sample of firms selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0). The results are shown below. -Which of the following statements is true?

Consider the following to answer the question(s) below: A sample of firms was selected from the high tech industry (Industry = 1) and the financial services sector (Industry = 0). Data were collected on the following variables: turnover rate, job growth, number of employees, and innovative index (higher scores indicate a more innovative and creative organizational culture). Below are the multiple regression results. -How much of the variability in Turnover Rate is explained by the multiple regression model?

Consider the following to answer the question(s) below: A sample of 30 companies was randomly selected for a study investigating what factors affect the size of company bonuses. Data were collected on the number of employees at the company and whether or not the employees were unionized (1 = yes, 0 = no). The following multiple regression model was fit to the data. -At α = 0.05, we can conclude that

Consider the following to answer the question(s) below: Consider the following scatter plot: -What does the scatter plot suggest?

Consider the following to answer the question(s) below: Consider the following scatter plot: -The model of this data would be better fit with the inclusion of

Which of the following statements about multiple regression model building methods is true?

Consider the following to answer the question(s) below: Consider the following scatter plot: -Which of the following statements best describes a point with high leverage?

Which of the following statements is true?

Consider the following to answer the question(s) below: A Toronto accounting firm estimated a model to explain variation in client profitability. The dependent variable is client net profits and the predictor variables include the hours spent working on the client and indicator variables to denote the type of client-manufacturing, service, or government. The indicator variables have a value of one if the client is the type described. The following are the model results. -If the number of hours spent on a client is 100, and the client is in the Service industry,what is the predicted net profit?

Which of the following statements describes the consequences of collinearity in a model?

The editors of a national automotive magazine recently studied 30 different automobiles sold in the Canada with the intent of seeing whether they could develop a multiple regression model to explain the variation in highway fuel consumption. A number of different independent variables were collected. Included in these were two variables described as follows: If these two variables are to be included in a regression model, how many additional indicator variables will be needed?