BUS105-3 First Try

Q 
A There is strong positive correlation between the Price in $ and the sq. ft. area of the property.

Q Which of the statement below best explains the coefficient of determination?
A The coefficient of determination is the proportion of total variation in the dependent variable Y that is explained or accounted for by the variations in the independent variable X

Q To identify and fit a regression, which of the following is an assumption of linear regression?
I. For each value of X, there is a corresponding Y value. These Y values follow the normal distribution.II.The means of the Y normal distributions do not lie on the regression line.III.Y values are statistically dependent.A I only
Q A Low p-value indicates that variable Store Area is in the rejection zone and is significant explaining changes in price of diamonds.

Q In a regression equation Y= A + BX, what is A?A A is the Y intercept in the population or the value of Y when X=0.
Q A 93.6% of the changes in dependent variable Y can be explained by changes in independent variables X_ij.
Q Which statement below best describes autocorrelation?
A Autocorrelation is a condition when successive residuals are correlated to each other over time.


Q When fitting a linear regression, the dependent variable is scaled on ________________.
A the Y-axis of a X-Y graph


Q To interpret appropriately, a correlation coefficient of 0.85 would indicate a_______________________.
A strong positive correlation


Q Which of the following statements is NOT a characteristic of coefficient of correlation?
A Value near -1 indicates a strong direct or positive association between the variables.


Q Which of the statement below best describes residuals in a regression equation?
A Residuals are the difference between the observed values of Y the dependent variables and the expected or predicted values of Y of the regression equation. 

Q To interpret appropriately, a correlation coefficient of 0.05 would indicate_______________________. A a medium strength positive correlation Q In a multiple regression, executing and deriving an insignificant Global (ANOVA) test indicates that _______________________________. A at least one of the independent variables is significant in explaining changes in the dependent variable Q  A An increase of 1 sq ft is not expected to raise the price of a diamond. Q The independent variable is _____________________. A the raw data that provides the basis for estimation Q  A

Low p-value indicates that variable SQFT is in the rejection zone and is significant explaining changes in price of property. Q  In a multiple regression, after executing and deriving a significant Global (ANOVA) test, you should then _______________. A

conduct a t-test for each individual regression coefficient and identify significant variables Q  Which of the following statements is NOT a characteristic of Variance Inflation Factor (VIF)? A A VIF of less than 10 is unsatisfactory. Q To interpret appropriately, a correlation coefficient of -0.85 would indicate a_______________________. A  strong negative correlation Q  When discussing appropriate multiple regression analysis, which of the following is an assumption of multiple regression? I.The variations in residuals are not the same for small and large values of predicted Y. II. The independent variables are correlated. III.The residuals are independent. A

III only

RESULTS: 85 /100