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Unformatted text preview: one of the above AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 9
Topic: Multiple regression model 35. R2 is defined as:
A. Total variation/explained variation
B. Explained variation/total variation
C. Unexplained variation/explained variation
D. Total variation/unexplained variation
E. Unexplained variation/total variation AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 3
Topic: Coefficient of determination 36. An acceptable residual plot exhibits:
A. Increasing error variance
B. Decreasing error variance
C. Constant error variance
D. A curved pattern
E. A mixture of increasing and decreasing error variance AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 9
Topic: Residual analysis 11377 Chapter 01  An Introduction to Business Statistics 37. Which one of the following is not an assumption about the residuals in a regression
model?
A. Constant variance
B. Independence
C. Normality
D. Variance of zero
E. Mean of zero AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 9
Topic: Residual analysis 38. In multiple regression analysis, a desirable residual plot has what type of appearance?
A. Curved
B. Cyclical
C. Fanning out
D. Funneling in
E. Horizontal band AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 9
Topic: Residual analysis 39. Which of the following residual plots is not used in regression analysis?
A. Residuals vs. parameter estimates
B. Residuals vs. values of an independent variable
C. Residuals vs. time order
D. Residuals vs. predicted values of the dependent variable
E. Standardized residuals vs. predicted values of the dependent variable AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 9
Topic: Residual analysis 11378 Chapter 01  An Introduction to Business Statistics 40. In regression analysis, the standard error (s) is _________ greater than the standard
deviation of y (the dependent variable).
A. Always
B. Sometimes
C. Never AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 2
Topic: Multiple regression model 41. In a multiple regression analysis, if the normal probability plot ____________, then it can
be concluded that the assumption of normality is not violated.
A. Is a straight line
B. Has the shape of a symmetric bell shaped curve
C. Is greatly curved
D. Is left skewed
E. Has the shape of a parabola that opens upward AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 2
Topic: Multiple regression model assumptions 42. Which one of the following tools is not used to check the normality of residuals
assumption for a multiple regression model?
A. Histogram
B. Stemandleaf display
C. Scatter diagram
D. Normal plot AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 9
Topic: Residual analysis 11379 Chapter 01  An Introduction to Business Statistics 43. If we are testing the significance of the independent variable X1 and we reject the null
hypothesis H0: β1 = 0, we conclude that:
A. X1 is significantly related to y.
B. X1 is not significantly related to y.
C. X1 is an unimportant independent variable.
D. β1 is significantly related to the dependent variable y. AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 5
Topic: Significance of an independent variable 44. In using the multiple regression method, we can model the effects of the different levels of
a qualitative independent variable by using a(n):
A. Interaction variable
B. Crossproduct term
C. Quadratic term
D. Dummy (indicator) variable
E. Variance equalizing transformation AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 7
Topic: Dummy variables 45. A particular multiple regression model has 3 independent variables, the sum of the
squared error is 7680, and the total number of observations is 34. What is the value of the
standard error of estimate?
A. 256
B. 232.72
C. 225.89
D. 16
E. 15.03 AACSB: Analytic
Bloom's: Application
Difficulty: Medium
Learning Objective: 2
Topic: Multiple regression model 11380 Chapter 01  An Introduction to Business Statistics 46. The multiple _________ measures the proportion of the variation in y (response variable)
explained by the multiple regression model or the set of independent variables included in the
multiple regression equation.
A. Correlation coefficient
B. Coefficient of determination
C. Total variation
D. Standard error
E. F test AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Medium
Learning Objective: 3
Topic: Coefficient of determination 47. _____ variation is the sum of explained variation plus the sum of unexplained variation.
A. Explained
B. Unexplained
C. Error
D. Total AACSB: Reflective Thinking
Bloom's: Comprehension
Difficulty: Easy
Learning Objective: 4
Topic: Multiple regression model 48. Dummy or indi...
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 Winter '14

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