 1 
Solutions to BUAD 310 InClass Practice for Final
11/24/09
True/False
1.
In a regression model, at any given combination of values of the independent variables, the
population of potential error terms is assumed to have a
t
distribution.
Answer: False
Difficulty: Medium
2.
A
t
test is used in testing the significance of an individual independent variable.
Answer: True
Difficulty: Medium
3.
Due to the fact that multiple regression models consist of multiple independent variables, residual
analysis cannot be performed.
Answer: False
Difficulty: Easy
4.
For the same point estimate of the dependent variable and the same level of significance, the
confidence interval is always wider than the corresponding prediction interval.
Answer: False
Difficulty: Hard
5.
An application of the multiple regression model generated the following results involving the
F
test of the overall regression model: pvalue = .0012,
R
2
= .67 and
s
= .076. Thus, the null hypothesis,
which states that none of the independent variables are significantly related to the dependent variable,
should be rejected at the .05 level of significance.
Answer: True
Difficulty: Medium
6.
In comparing regression models, the regression model with the largest
R
2
will also have the
smallest standard error (
s
).
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 Fall '07
 Lv
 Business, Regression Analysis, multiple regression model

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