Difficulty: Easy Goal: 2 18. To test the global hypothesis in multiple regression analysis, an F-statistic is used. Difficulty: Easy Goal: 2 AACSB: AS19. A dummy variable is added to the regression equation to control for error. Difficulty: Easy Goal: 8 Test Bank, Chapter 14239

20. If a dummy variable for gender is included in a multiple regression analysis, "male" would be coded as 1 and "female" would be coded as 2. Difficulty: Easy Goal: 8 21. Autocorrelation often happens when data has been collected over periods of time. Difficulty: Easy Goal: 7 22. Homoscedasticity occurs when the variance of the residuals ( Y – ˆY) is different for different valuesof ˆY. Difficulty: Easy Goal: 6 AACSB: AS23. In multiple regression analysis, a residual is the difference between the value of an independent variable and its corresponding dependent variable value. Difficulty: Easy Goal: 6 24. In multiple regression analysis, a residual is the difference between the value of a dependent variable,Y, and its predicted value, ˆY. Difficulty: Easy Goal: 6 Multiple Choice25. In multiple regression analysis, residual analysis is used to test the requirement that A) the variation in the residuals is the same for all fitted values of ˆB) the independent variables are the direct cause of the dependent variable C) the number of independent variables included in the analysis is correct D) prediction error is minimized Answer: YA Difficulty: Medium Goal: 6 AACSB: AS26. A valid multiple regression analysis assumes or requires that C Difficulty: Medium Goal: 1 Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e240

27. How is the degree of association between a set of independent variables and a dependent variable measured? C Difficulty: Medium Goal: 3 AACSB: AS28. In a multiple regression ANOVA table, explained variation is represented by A Difficulty: Medium Goal: 2 AACSB: AS