Question 1

An example of a dummy variable is "time to product's first repair" in years.

Accepted Answer

A) True 
 B)False

Question 2

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months),gender (0 = female,1 = male)and job type (0 = clerical,1 = technical).The following ANOVA summarizes the regression results:  Based on the hypothesis tests for the individual regression coefficients,

Accepted Answer

A) All the regression coefficients are not equal to zero. 
B) "Job" is the only non-significant variable in the model. 
C) The intercept is the only significant variable in the model. 
D) "Service" is the only significant variable in the model.

Question 3

A dummy variable is added to the regression equation to control for error.

Accepted Answer

A) True 
 B)False

Question 4

To test the global hypothesis in multiple regression analysis,an F-statistic is used.

Accepted Answer

A) True 
 B)False

Question 5

In multiple regression analysis,a dummy variable is

Accepted Answer

A) An additional quantitative variable 
B) A nominal variable with three or more values 
C) A nominal variable with only two values 
D) A new regression coefficient

Question 6

In multiple regression analysis,when the independent variables are highly correlated,this situation is called ____________________.

Accepted Answer

A) Autocorrelation 
B) Multicollinearity 
C) Homoscedasticity 
D) Curvilinearity

Question 7

It has been hypothesized that overall academic success for college freshmen as measured by grade point average (GPA)is a function of IQ scores  ,hours spent studying each week  ,and one's high school average  .Suppose the regression equation is:  .The multiple standard error is 6.313 and  = 0.826.
For which independent variable does a unit change have the greatest effect on the GPA? ________________

Accepted Answer

The answer of It has been hypothesized that overall academic...

Question 8

In an ANOVA table for a multiple regression analysis,the mean square of error is

Accepted Answer

A) the treatment sum of squares divided by the regression degrees of freedom. 
B) n - (k - 1 ). 
C) the regression sum of squares divided by the regression degrees of freedom. 
D) total sum of squares divided by the regression degrees of freedom.

Question 9

What does the correlation matrix for a multiple regression analysis contain?

Accepted Answer

A) Multiple correlation coefficients 
B) Simple correlation coefficients 
C) Multiple coefficients of determination 
D) Multiple standard errors of estimate

Question 10

In multiple regression analysis,residuals (Y - Ŷ )are used to:

Accepted Answer

A) Provide a global test of a multiple regression model. 
B) Evaluate multicollinearity. 
C) Evaluate homoscedasticity. 
D) Compare two regression coefficients.

Question 11

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years.Suppose our econometric model resulted in the following data. How much does tire production change for every thousand cars produced three years ago? _____

Accepted Answer

The answer of The production of automobile tires in any...

Question 12

A dummy variable is limited to two values.

Accepted Answer

A) True 
 B)False

Question 13

Violating the need for successive observations of the dependent variable to be uncorrelated is called ____________________________.

Accepted Answer

The answer of Violating the need for successive observations of...

Question 14

Multiple  measures the proportion of ____________________.

Accepted Answer

The answer of Multiple  measures the proportion of ____________________....

Question 15

If the correlation between the two independent variables of a regression analysis is 0.11 and each independent variable is highly correlated to the dependent variable,what does this indicate?

Accepted Answer

A) Multicollinearity between these two independent variables 
B) A negative relationship is not possible 
C) Only one of the two independent variables will explain a high percent of the variation 
D) An effective regression equation

Question 16

The best example of a null hypothesis for testing an individual regression coefficient is:

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 17

In a multiple regression analysis,if the regression coefficient of a dummy variable is significant and has a sample value of 100,then the dummy variable's effect on the dependent variable is: no effect,or an increase of 100.

Accepted Answer

A) True 
 B)False

Question 18

A correlation matrix shows individual correlation coefficients for all pairs of variables.

Accepted Answer

A) True 
 B)False

Question 19

Twenty-one executives in a large corporation were randomly selected for a study to determine the effect of several factors on annual salary (expressed in $000's).The factors selected were age,seniority,years of college,number of company divisions they had been exposed to and the level of their responsibility.A regression analysis was performed using a popular spreadsheet program with the following regression output: What proportion of the total variation in salary is accounted for by the set of independent variables? ___________

Accepted Answer

The answer of Twenty-one executives in a large corporation were...

Question 20

What can we conclude if the global test of regression rejects the null hypothesis?

Accepted Answer

A) Strong correlations exist among the variables. 
B) No relationship exists between the dependent variable and any of the independent variables. 
C) At least one of the net regression coefficients is not equal to zero. 
D) Good predictions are not possible.

Exam 14: Multiple Regression and Correlation Analysis

An example of a dummy variable is "time to product's first repair" in years.

A dummy variable is added to the regression equation to control for error.

To test the global hypothesis in multiple regression analysis,an F-statistic is used.

In multiple regression analysis,a dummy variable is

In multiple regression analysis,when the independent variables are highly correlated,this situation is called ____________________.

In an ANOVA table for a multiple regression analysis,the mean square of error is

What does the correlation matrix for a multiple regression analysis contain?

In multiple regression analysis,residuals (Y - Ŷ ) are used to:

The production of automobile tires in any given year is related to the number of automobiles produced this year and in prior years.Suppose our econometric model resulted in the following data. How much does tire production change for every thousand cars produced three years ago? _____

A dummy variable is limited to two values.

Violating the need for successive observations of the dependent variable to be uncorrelated is called ____________________________.

Multiple measures the proportion of ____________________.

If the correlation between the two independent variables of a regression analysis is 0.11 and each independent variable is highly correlated to the dependent variable,what does this indicate?

The best example of a null hypothesis for testing an individual regression coefficient is:

In a multiple regression analysis,if the regression coefficient of a dummy variable is significant and has a sample value of 100,then the dummy variable's effect on the dependent variable is: no effect,or an increase of 100.

A correlation matrix shows individual correlation coefficients for all pairs of variables.

What can we conclude if the global test of regression rejects the null hypothesis?