Question 1

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 ___.

Accepted Answer

A) x1 
B) x2 
C) x3 
D) x4 
E) x5

Question 2

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

Accepted Answer

A) 8.88 
B) 2,031.38 
C) 253.86 
D) 262.19 
E) 2,535.86

Question 3

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 ___.

Accepted Answer

A) ± 1.316 
B) ± 1.314 
C) ± 1.703 
D) ± 1.780 
E) ± 1.708

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 ___.

Accepted Answer

A) equal monthly expenditures for groceries 
B) the suburban household's monthly expenditures for groceries will be $49 more 
C) the rural household's monthly expenditures for groceries will be $49 more 
D) the suburban household's monthly expenditures for groceries will be $8 more 
E) the rural household's monthly expenditures for groceries will be $49 less

Question 6

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 ___.

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 5

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

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 ___.

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
E) 7

Question 9

The following scatter plot indicates that ___.

Accepted Answer

A) a log x transform may be useful 
B) a log y transform may be useful 
C) an x2 transform may be useful 
D) no transform is needed 
E) a (- x)transform may be useful

Question 10

The following scatter plot indicates that ___.

Accepted Answer

A) a log x transform may be useful 
B) a y2 transform may be useful 
C) a x2 transform may be useful 
D) no transform is needed 
E) a 1/x transform may be useful

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) x1 and x5 
B) x2 and x3 
C) x4 and x2 
D) x4 and x3 
E) x4 and y

Question 14

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

Accepted Answer

A) multicollinearity 
B) autocorrelation 
C) partial correlation 
D) rank correlation 
E) non-normality

Question 15

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

Accepted Answer

A) y = 707.9144 + 2.903307 x1 + 11.91297 x12 
B) y = 707.9144 + 435.1183 x1 + 1.626947 x12 
C) y = 435.1183 + 81.62802 x1 + 3.806211 x12 
D) y = 1.626947 + 0.035568 x1 + 3.129878 x12 
E) y = 1.626947 + 0.035568 x1 - 3.129878 x12

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) 5531.17 
B) 1,928.25 
C) 1023.05 
D) 3149.75 
E) 9380.35

Question 18

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

Accepted Answer

A) 3 
B) 4 
C) 5 
D) 6 
E) 7

Question 19

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

Accepted Answer

A) x1 and x2 
B) x1 and x4 
C) x4 and x5 
D) x4 and x3 
E) x5 and y

Question 20

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

Accepted Answer

A) use the forward selection procedure 
B) use the backward elimination procedure 
C) use the forward elimination procedure 
D) use the stepwise regression procedure 
E) use all possible regressions

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

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.

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 ___.

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 α\alphaα = 0.10 to test the null hypothesis H0: β\betaβ 2 = 0,the critical t value is ___.

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

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.

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 ___.

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: For x₁= 20,the predicted value of y is ___.