In a multiple regression mode if the largest vif is

11. In a multiple regression mode if the largest VIF is 21.6, then it can be concluded that there
are indications of multicollinearity.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 4
Topic: Multicollinearity
12. In multiple regression analysis, if the simple correlation coefficient between the dependent
variable and one of the independent variables is .95, then this indicates that the problem of
multicollinearity exists.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 4
Topic: Multicollinearity
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Chapter 15 - Model Building and Model Diagnostics
13. When there are indications of autocorrelation, first an investigation should be conducted
to determine whether one or more independent variables that might explain the
autocorrelation have been omitted from the model.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 8
Topic: Autocorrelation
14. If a particular multiple regression model has a small value of the C statistic and C for this
model is less than k + 1, where k is the number of independent variables in the model, then
the model should be considered biased and therefore undesirable.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 5
Topic: Model Building
Multiple Choice Questions
15. The general form of the quadratic multiple regression models is:
A. y =
1
X
1
+
2
X
B. y =
0
+
1
X
1
+
2
X
C. y =
0
+
1
X +
2
X
D. y =
0
+
1
X
E. y =
0
+
1
X
1
+
2
X
2
2
+
2
+
2
+
2 +
2 +
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 1
Topic: Quadratic
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Chapter 15 - Model Building and Model Diagnostics
16. As we increase the number of independent variables in a multiple regression model, the F
statistic will _____ increase.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 5
Topic: Model Building
17. In the quadratic regression model if the term
2
is ______
zero, then the parabola opens __________.
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 1
Topic: Quadratic
18. In the quadratic regression model the
1
term represents
the:
AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 1
Topic: Quadratic
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Chapter 15 - Model Building and Model Diagnostics