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Unformatted text preview: 0. The graph of the prediction equation obtained from the model
is a(n)
A. Line
B. Plane
C. Parabola
D. Exponential curve 21. Adding any independent variable to a regression model will increase
A. Adjusted R2 or
B. s
C. MSE
D. R2
E. The length of all prediction intervals 11450 1 term represents Chapter 01  An Introduction to Business Statistics 22. If a regression model with k independent variables has a C statistic less than _______,
then the model is considered to be desirable.
A. k + 1
B. k
C. k1
D. 1/k
E. k2 23. A leverage value is considered to be large if it is substantially greater than
A. .5 times the average leverage value
B. 1.5 times the average leverage value
C. 2.0 times the average leverage value
D. 5.0 times the average leverage value
E. 4.0 times the average leverage value 24. As rough rule of thumb, if the absolute value of the studentized residual for an observation
is greater than ______, then it is concluded that there is some evidence that the observation is
an outlier.
A. 1
B. 2
C. 2.5
D. 4 25. Multicollinearity between independent variables is serious if the mean variance inflation
factor is
A. Substantially less than 1
B. Substantially greater than 1
C. Between  1 and + 1
D. Less than .5
E. Substantially less than zero 11451 Chapter 01  An Introduction to Business Statistics 26. Which one of the following procedures is not a variable selection method for multiple
regression analysis?
A. Backward elimination
B. Stepwise regression
C. DurbinWatson test
D. Maximum R2 improvement
E. Best subset regression based on all possible combinations of multiple regression equations 27. All of the following are desirable outcomes for a multiple regression model except
A. High R2
B. Small s
C. Small C statistic
D. Large Cook's distance measure
E. Large F statistic 28. In using a regression model, if a new independent variable is added, the value of the R2
(coefficient of multiple determination) will ___________ decrease.
A. Always
B. Sometimes
C. Never 29. What value of DurbinWatson statistic indicates there is no autocorrelation present in a
time ordered data?
A. 1
B. 1
C. 2
D. 2
E. 0 11452 Chapter 01  An Introduction to Business Statistics 30. As we increase the number of independent variables in a multiple regression model, the F
statistic in the analysis of variance table for the multiple regression model will ________
increase.
A. Always
B. Sometimes
C. Never 31. Dropping an independent variable from a multiple linear regression model will always
result in
A. An increase in the MSE value
B. An increase in the R2 value
C. A decrease in the R2 value
D. A decrease in the MSE value 32. In a multiple regression analysis, the current model has three independent variables. The
analyst decides to add another (fourth) independent variable while retaining the other three
independent variables. As a result of this addition, the value of SSE will ____________
decrease.
A. Always
B. Sometimes
C. Never 33. In a multiple regression analysis, the current model has three independent variables. The
analyst decides to add another (fourth) independent variable while retaining the other three
independent variables. As a result of this addition, the value of MSE will ____________
decrease.
A. Always
B. Sometimes
C. Never 11453 Chapter 01  An Introduction to Business Statistics 34. In a multiple regression analysis, the current model has three independent variables. The
analyst decides to add another (fourth) independent variable while retaining the other three
independent variables. As a result of this addition, the value of explained variation will
____________ decrease.
A. Always
B. Sometimes
C. Never 35. In a multiple regression analysis, the current model has three independent variables. The
analyst decides to add another (fourth) independent variable while retaining the other three
independent variables. As a result of this addition, the value of adjusted R2 will
____________ decrease.
A. Always
B. Sometimes
C. Never 36. Cook's distance measure is used in:
A. Determining if there is significant first order autocorrelation.
B. Identifying influential observations in multiple regression analysis.
C. Determining the significance of an independent variable.
D. Determining if there is significant multicollinearity.
E. Determining if the overall regression model is significant. 37. A very insignificant independent variable (an independent variable that has a very weak
relationship with the dependent variable) is added to a multiple regression equation. As a
result of this change, the value of explained variation (SSR) will _________, the value of
multiple coefficient of determination (R2) will _________, and the calculated value of the F
statistic will most likely _________.
A. Decrease, increase, decrease
B. Increase, decrease, decrease
C. Increase, increase, increase
D. Increase, increase, decrease
E. Decrease, decrease, decrease 11454 Chapter 01  An Introduction to Business Statistics 38. The DurbinWatson test statistic ranges from:
A. 4 to 4
B. 0 to 4
C. 0 to 3
D. 1 to 1
E. 0 to 1 39. If the DurbinWatson statistic is less than dL, then it is concluded that
A. Th...
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 Winter '14

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