BUS105-3 Second Try

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 
A There is strong positive correlation between the Price and the number of Carats in a diamond.

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 
A the expected value of Y for a particular value of independent variable X which tends to be on the regression line

Q In a multiple regression, executing and deriving a significant Global (ANOVA) test indicates that ______________________________.
A at least one of the independent variables is significant in explaining changes in the dependent variable

Q A 95% confidence interval of a predicted Y-value can be interpreted as __________________.
A 95% of the observed Y-values is expected to be within this confidence interval

Q 
A An increase of 1 SQFT is expected to increase the price of the property by $1.24.

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

Low p-value indicates that variable Carats is in the rejection zone and is significant explaining changes in price of diamonds.

Q 

A Low p-value indicates that variable Carats is in the rejection zone and is significant explaining changes in price of diamonds.

Q Demonstrate your essential knowledge in statistics by choosing a statement that does not describe a characteristic of coefficient of correlation.

A 

It ranges from 0 to 1. Q  When discussing appropriate multiple regression analysis, which of the following is an assumption of multiple regression? I.There is a linear relationship between dependent variable and the set of independent variables. II.The variations in residuals are not the same for small and large values of predicted Y III.The independent variables are correlated. A I only Q When describing a multiple linear regression equation Y= A + B1X1 + B2X2 + B3X3 + ... + BkXk, what is Bj? A Bj is the amount Y changes when Xj increases by 1 unit with all other independent variables are held constant Q Which of the following statements is NOT a characteristic of Variance Inflation Factor (VIF)? A An independent variable with unsatisfactory VIF should not be removed from the model. 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  If multicollinearity is detected, which of the following should be the next step? I.Increase the sample size and re-run the regression. II. Re-run the regression with only the highly correlated independent variables. III.Remove one of the highly correlated independent variables and re-run the regression. A

III only Q  When fitting a linear regression, the dependent variable is the variable ____________.  I. being observed from independent variables II. being predicted or estimated from the independent variables III. used to predict or estimate the independent variables A II only 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 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  In a multiple regression, after executing and deriving an insignificant Global (ANOVA) test, you should then _______________. A conduct a t-test for each individual regression coefficient RESULTS: 90/100