310 14 solution

310 14 solution - Solutions to BUAD 310 In-Class Practice...

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- 1 - Solutions to BUAD 310 In-Class 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: p-value = .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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This note was uploaded on 01/16/2010 for the course BUAD 310 taught by Professor Lv during the Fall '07 term at USC.

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310 14 solution - Solutions to BUAD 310 In-Class Practice...

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