Show questions one by one

1. A regression model in which more than one independent variable is used to predict the
dependent variable is called

A. ? a simple linear regression model

B. ? a multiple regression model

C. ? an independent model

D. ? none of the above

2. A term used to describe the case when the independent variables in a multiple regression model
are correlated is

A. ? regression

B. ? correlation

C. ? multicollinearity

D. ? none of the above

3. A multiple regression model has the form: y = 2 + 3x1 + 4x2. As x1 increases by 1 unit (holding
x2 constant), y will

A. ? increase by 3 units

B. ? decrease by 3 units

C. ? increase by 4 units

D. ? decrease by 4 units

4. A multiple regression model has

B. ? more than one dependent variable

C. ? more than one independent variable

D. ? none of the above

5. A measure of goodness of fit for the estimated regression equation is the

A. ? multiple coefficient of determination

B. ? mean square due to error

C. ? mean square due to regression

D. ? none of the above

6. The adjusted multiple coefficient of determination accounts for

A. ? the number of dependent variables in the model

B. ? the number of independent variables in the model

C. ? unusually large predictors

D. ? none of the above

7. The multiple coefficient of determination is computed by

A. ? dividing SSR by SST

B. ? dividing SST by SSR

C. ? dividing SST by SSE

D. ? none of the above

8. For a multiple regression model, SST = 200 and SSE = 50. The multiple coefficient of determination is
 A. ? 0.25

B. ? 4.00

C. ? 0.75

D. ? none of the above

9. The correct relationship between SST, SSR, and SSE is given by

A. ? SSR = SST + SSE

B. ? SST = SSR + SSE

C. ? SSE = SSR - SST

D. ? all of the above

E. ? none of the above

10. The ratio of MSR/MSE yields

A. ? the t statistic

B. ? SST

C. ? the F statistic

D. ? none of the above

Show questions one by one

1. In multiple regression analysis, there are two or more dependent variables.

A. ? True

B. ? False
2. The least squares method cannot be used to develop the coefficients of the estimated
regression equation for multiple regression analysis.

A. ? True

B. ? False

3. An F test can be used to test for a significant relationship in multiple regression analysis.

A. ? True

B. ? False

4. The number of degrees of freedom for the error sum of squares in multiple regression
analysis decreases as the number of independent variables increases.

A. ? True

B. ? False

5. The number of degrees of freedom in the t test for the significance of individual parameters in
multiple regression analysis is always n - 3.

A. ? True

B. ? False

6. Consider a regression model in which two independent variables, x1and x2 are used to explain the
dependent variable, y. In the test of the hypotheses Ho : β1 = β2 = 0 and Ha : either β1 or β2or both s
0, the test statistic MSR/MSE has a sampling distribution that is the

A. ? t distribution

B. ? F distribution

C. ? normal distribution
 D. ? chi-square distribution

7. Consider a regression model in which two independent variables, x1 and x2 are used to explain
the dependent variable, y. Which sampling distribution is used to test H0 : β2 = 0, Ha : β2 s 0?

A. ? t distribution

B. ? F distribution

C. ? normal distribution

D. ? chi-square distribution

8. A car-rental company wanted to predict the annual operating cost (y) of its cars using both the number
of miles a car was driven (x1) and the size of the car (subcompact, compact, midsize, and full-size).
To incorporate the effect of the size of the car, the following dummy variables were defined.
X2 X3 X4 Car size
0 0 0 subcompact
1 0 0 compact
0 1 0 midsize
0 0 1 full size
The mean annual operating cost for a compact car is

A. ? β0

B. ? β 0 + β1x1 + β2x2

C. ? β0 + β1x1 + β2

D. ? β0 + β1x1 + β3

E. ? β0 + β1x1+ β4

9. A car-rental company wanted to predict the annual operating cost (y) of its cars using both the number
of miles a car was driven (x1) and the size of the car (subcompact, compact, midsize, and full-size).
To incorporate the effect of the size of the car, the following dummy variables were defined.
X2 X3 X4 Car size
0 0 0 subcompact
1 0 0 compact
0 1 0 midsize
0 0 1 full size
The mean annual operating cost for a subcompact car is

A. ? βo
 B. ? βo+ β1x1

C. ? βo + β1x1 +

D.
? βo + β1x1 +
β3

10. A car-rental company wanted to predict the annual operating cost (y) of its cars using both the
number of miles a car was driven and the size of the car (subcompact, compact, midsize, and full-
size). To incorporate the effect of the size of the car, the following dummy variables were defined.
X2 X3 X4 Car size
0 0 0 subcompact
1 0 0 compact
0 1 0 midsize
0 0 1 full size
The difference in mean annual operating costs between a full-size car and a subcompact car is

A. ? βo

B. ? β4

C. ? βo + βo

D. ? βo + β1x1 + β4

11. Which of the following is not an assumption about the error term in the multiple regression model?

A. ? The error term has variance 0

B. ? The values of the error term are independent.

C. ? The values of the error term are normally distributed.

D. ? All of the above are assumptions about the error term.

E. ? None of the above.

12. If two or more independent variables are strongly correlated, the following exists.

A. ? Influential Observation

B. ? Leverage
 C. ? Multicollinearity

D. ? Outlier

13. Standardized residuals cannot be used to test the assumptions about multiple regression.

A. ? True

B. ? False

14. Standardized residuals can be used to detect outliers.

A. ? True

B. ? False

15. Qualitative independent variables cannot be used in regression analysis.

A. ? True

B. ? False