Question 1

A local parent group was concerned with the increasing school cost for families with school aged children.The parent group was interested in understanding the relationship between the
The academic grade level for the child and the total costs spent per child per academic year.They
Performed a multiple regression analysis using total cost as the dependent variable and academic
Year (x1)as the independent variables.The 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 A

Question 2

If the variance inflation factor is bigger than 10,the regression analysis might suffer from the problem of multicollinearity.

Accepted Answer

A) True 
 B)False  True

Question 3

Multiple linear regression models can handle certain nonlinear relationships by ________.

Accepted Answer

A)   biasing the sample
B)   recoding or transforming variables
C)   adjusting the resultant ANOVA table
D)   adjusting the observed t and F values
E)   performing nonlinear regression B

Question 4

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.  For a rural household with $90,000 annual income,Abby's model predicts weekly grocery expenditure of ________________.

Accepted Answer

A)   $156.19
B)   $224.98
C)   $444.62
D)   $141.36
E)   $175.86

Question 5

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 6

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 7

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 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

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

If the effect of an independent variable (e.g.,square footage)on a dependent variable (e.g.,price)is affected by different ranges of values for a second independent variable (e.g.,age ),the two independent variables are said to interact.

Accepted Answer

A) True 
 B)False

Question 13

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 14

If a square-transformation is applied to a series of positive numbers,all 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 15

The regression model y = $\beta$0 + $\beta$1 x1 + $\beta$2 x2 + $\beta$3 x3 + $\varepsilon$ is a third order model.

Accepted Answer

A) True 
 B)False

Question 16

A local parent group was concerned with the increasing school cost for families with school aged children.The parent group was interested in understanding the relationship between the
The academic grade level for the child and the total costs spent per child per academic year.They
Performed a multiple regression analysis using total cost as the dependent variable and academic
Year (x1)as the independent variables.The multiple regression analysis produced the following
Tables.
 
 Using  $\alpha$ = 0.05 to test the null hypothesis H0: $\beta$1 = 0,the critical t value is ____.

Accepted Answer

A)   ± 1.311
B)   ± 1.699
C)   ± 1.703
D)   ± 2.502
E)   ± 2.052

Question 17

If a coefficient of determination for a given model is 0.85,then its variance inflation factor is ______.

Accepted Answer

A)   8.5
B)   7.7
C)   6.2
D)   4.9
E)   3.6

Question 18

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 "total assets of credit customer" in Yvonne's regression model is ________.

Accepted Answer

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

Question 19

If each pair of independent variables is weakly correlated,there is no problem of multicollinearity.

Accepted Answer

A) True 
 B)False

Question 20

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 an MP3 sales with 10,000 website visitors,Alan's model predicts annual sales of heavy metal dong downloads of ________________.

Accepted Answer

A)   $2,100,000
B)   $524,507
C)   $533,333
D)   $729,683
E)   $21,000,000

Exam 14: Building Multiple Regression Models

If the variance inflation factor is bigger than 10,the regression analysis might suffer from the problem of multicollinearity.

Multiple linear regression models can handle certain nonlinear relationships by ________.

The following scatter plot indicates that _________.

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

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

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

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

If the effect of an independent variable (e.g.,square footage)on a dependent variable (e.g.,price)is affected by different ranges of values for a second independent variable (e.g.,age ),the two independent variables are said to interact.

The following scatter plot indicates that _________.

If a square-transformation is applied to a series of positive numbers,all 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 regression model y = $\beta$ ₀ + $\beta$ ₁ x₁ + $\beta$ ₂ x₂ + $\beta$ ₃ x₃ + $\varepsilon$ is a third order model.

If a coefficient of determination for a given model is 0.85,then its variance inflation factor is ______.

If each pair of independent variables is weakly correlated,there is no problem of multicollinearity.

Exam 14: Building Multiple Regression Models

If the variance inflation factor is bigger than 10,the regression analysis might suffer from the problem of multicollinearity.

Multiple linear regression models can handle certain nonlinear relationships by ________.

The following scatter plot indicates that _________.

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 ____.

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

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

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

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

If the effect of an independent variable (e.g.,square footage)on a dependent variable (e.g.,price)is affected by different ranges of values for a second independent variable (e.g.,age ),the two independent variables are said to interact.

The following scatter plot indicates that _________.

If a square-transformation is applied to a series of positive numbers,all 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 regression model y = β\betaβ 0 + β\betaβ 1 x1 + β\betaβ 2 x2 + β\betaβ 3 x3 + ε\varepsilonε is a third order model.

If a coefficient of determination for a given model is 0.85,then its variance inflation factor is ______.

If each pair of independent variables is weakly correlated,there is no problem of multicollinearity.

The regression model y = $\beta$ ₀ + $\beta$ ₁ x₁ + $\beta$ ₂ x₂ + $\beta$ ₃ x₃ + $\varepsilon$ is a third order model.