Question 1

In a linear regression equation of the form Y = a + bX, the slope parameter b shows
A) $\Delta$X / $\Delta$Y.
B) $\Delta$Y / $\Delta$X.
C) $\Delta$Y / $\Delta$b.
D) $\Delta$X / $\Delta$b.
E) none of the above

Accepted Answer

The slope parameter b in a linear regression equation represents the change in Y for a one-unit change in X, which is $\Delta$Y / $\Delta$X.

Question 2

Which of the following is an example of a time-series data set?
A) amount of labor employed in each factory in the U.S. in 2007.
B) amount of labor employed yearly in a specific factory from 1987 through 2007.
C) average amount of labor employed at specific times of the day at a specific factory in 2007.
D) All of the above are time-series data sets.

Accepted Answer

Time-series data involves observations of a variable or several variables over time. Option B describes data collected over a period of years, making it a time-series data set.

Question 3

In the linear model , a test of the hypothesis that parameter c equals zero is A) an F-test. B) an R²-test. C) a zero-statistic. D) a t-test. E) a Z-test.

Accepted Answer

D

Question 4

refer to the following:
The linear regression equation, Y = a + bX, was estimated. The following computer printout was
obtained:
‪ 
-What is the critical value of t at the 1% level of significance?
A) 1.746
B) 2.120
C) 2.878
D) 2.921

Accepted Answer

The answer of refer to the following:
The linear regression equation,...

Question 5

refer to the following:
The linear regression equation, Y = a + bX, was estimated. The following computer printout was
obtained:
‪ 
-Which of the following statements is correct at the 1% level of significance?
A) Both 
 
And 
 
Are statistically significant.
B) Neither 
 
Nor 
 
Is statistically significant.
C) 
 
Is statistically significant, but 
 
Is not.
D) 
 
Is statistically significant, but 
 
Is not.

Accepted Answer

The answer of refer to the following:
The linear regression equation,...

Question 6

refer to the following:
The linear regression equation, Y = a + bX, was estimated. The following computer printout was
obtained:
‪ 
-The exact level of significance of

Is
A) 0.171 percent.
B) 1 percent.
C) 1.71 percent.
D) 2.66 percent.
E) 2.921 percent.

Accepted Answer

The answer of refer to the following:
The linear regression equation,...

Question 7

refer to the following:
The linear regression equation, Y = a + bX, was estimated. The following computer printout was
obtained:
‪ 
-If X equals 20, what is the predicted value of Y?
A) 186.42
B) 165.69
C) -186.42
D)-411.72

Accepted Answer

The answer of refer to the following:
The linear regression equation,...

Question 8

refer to the following:
A firm is experiencing theft problems at its warehouse. A consultant to the firm believes that the dollar loss from theft each week (T) depends on the number of security guards (G) and on the unemployment rate in the county where the warehouse is located (U measured as a percent). In order to test this hypothesis, the consultant estimated the regression equation T = a + bG + cU and obtained the following results:
 
-Which of the following is correct at the 1% level of significance?
A) The regression equation as a whole is statistically significant because the p-value of F is smaller than 0.01.
B) The estimates of the parameters a, b, and c are all statistically significant because the absolute values of their t-ratios exceed 2.797.
C) The estimates of the parameters a, b, and c are all statistically significant because the p- values for, 
 
, 
 
And 
 
Are all less than 0.01.
D) The critical value of t is 2.797.
E) all of the above

Accepted Answer

The answer of refer to the following:
A firm is experiencing...

Question 9

In the nonlinear function

, the parameter c measures
A) $\Delta$Y /$\Delta$Z.
B) the percent change in Y for a 1 percent change in Z.
C) the elasticity of Y with respect to Z.
D) both a and c
E) both b and c

Accepted Answer

The answer of In the nonlinear function

, the parameter c...

Question 10

refer to the following computer output from estimating the parameters of the nonlinear model
  The computer output from the regression analysis is:
 
-The nonlinear relation can be transformed into the following linear regression model:
A) 
B) 
C) 
D)

Accepted Answer

The answer of refer to the following computer output from...

Question 11

refer to the following computer output from estimating the parameters of the nonlinear model
  The computer output from the regression analysis is:
 
-The estimated value of a is
A) -0.6931
B) 0.50
C) -3.67
D) 2.66

Accepted Answer

The answer of refer to the following computer output from...

Question 12

refer to the following computer output from estimating the parameters of the nonlinear model
  The computer output from the regression analysis is:
 
-Which of the parameter estimates are statistically significant at the 90% level of confidence?
A) All the parameter estimates are statistically significant.
B) All parameter estimates except 
 
And 
 
Are statistically significant.
C) 
 
Is not statistically significant, but all the rest of the parameter estimates are significant.
D) 
 
Is not statistically significant, but all the rest of the parameter estimates are significant.

Accepted Answer

The answer of refer to the following computer output from...

Question 13

refer to the following nonlinear model which relates W to P, Q, and R:
  
The computer output form the regression analysis is:
 
-The nonlinear relation can be transformed into the following linear regression model:
A) 
B) 
C) 
D)

Accepted Answer

The answer of refer to the following nonlinear model which...

Question 14

refer to the following nonlinear model which relates W to P, Q, and R:
  
The computer output form the regression analysis is:
 
-Which of the parameter estimates are statistically significant at the 5% level of significance?
A) All the parameter estimates are statistically significant.
B) All parameter estimates except  and  are statistically significant.
C) 
 
Is not statistically significant, but all the rest of the parameter estimates are significant.
D) 
 
Is not statistically significant, but all the rest of the parameter estimates are significant.

Accepted Answer

The answer of refer to the following nonlinear model which...

Question 15

refer to the following nonlinear model which relates W to P, Q, and R:
  
The computer output form the regression analysis is:
 
-The estimated value of a is
A) 0.916
B) 12.182
C) 2.50
D) 2.66

Accepted Answer

The answer of refer to the following nonlinear model which...

Question 16

In a multiple regression model, the coefficients on the independent variables measure
A) the percent of the variation in the dependent variable explained by a change in that independent variable, all other influences held constant.
B) the change in the dependent variable from a one-unit change in that independent variable, all other influences held constant.
C) the change in that independent variable from a one-unit change in the dependent variable, all other influences held constant.
D) the change in the dependent variable explained by the random error, all other influences held constant.

Accepted Answer

The coefficients in a multiple regression model represent the expected change in the dependent variable for a one-unit change in the independent variable, assuming all other variables in the model are held constant. This is why option B is correct.

Question 17

refer to the following:
A manager wishes to estimate an average cost equation of the following form:
  
where Q is the level of output. Letting Z = QS1U1P12S1S1P0 and using least-squares estimation, the manager obtains the following computer output:
 
-Which of the parameter estimates are statistically significant at the 1% significance level?
A) All the parameter estimates are statistically significant.
B) All parameter estimates except  are statistically significant.
C)  is not statistically significant, but all the rest of the parameter estimates are significant.
D)  is not statistically significant, but all the rest of the parameter estimates are significant.

Accepted Answer

The answer of refer to the following:
A manager wishes to...

Question 18

refer to the following:
A manager wishes to estimate an average cost equation of the following form:
  
where Q is the level of output. Letting Z = QS1U1P12S1S1P0 and using least-squares estimation, the manager obtains the following computer output:
 
-When output is 40 units, what is average cost?
A) $200
B) $280
C) $360
D) $480
E) $520

Accepted Answer

The answer of refer to the following:
A manager wishes to...

Question 19

refer to the following:
A manager wishes to estimate an average cost equation of the following form:
  
where Q is the level of output. Letting Z = QS1U1P12S1S1P0 and using least-squares estimation, the manager obtains the following computer output:
 
-When output is 20 units, what is average cost?
A) $160
B) $200
C) $280
D) $340
E) $360

Accepted Answer

Average cost = Total cost / OutputTotal cost = Fixed cost + Variable costFixed cost = $100Variable cost = $10 per unitOutput = 20 unitsVariable cost = $10 * 20 = $200Total cost = $100 + $200 = $300Average cost = $300 / 20 = $15

Question 20

A simple linear regression equation relates G and D as follows:
G = a + bD
-The explanatory variable is _______, and the dependent variable is ________.

Accepted Answer

The answer of A simple linear regression equation relates G...

Quiz 4: Basic Estimation Techniques

In a linear regression equation of the form Y = a + bX, the slope parameter b shows

Which of the following is an example of a time-series data set?

In the linear model , a test of the hypothesis that parameter c equals zero is

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -What is the critical value of t at the 1% level of significance?

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -Which of the following statements is correct at the 1% level of significance?

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -The exact level of significance of Is

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -If X equals 20, what is the predicted value of Y?

In the nonlinear function $In the nonlinear function , the parameter c measures A) \Delta Y / \Delta Z. B) the percent change in Y for a 1 percent change in Z. C) the elasticity of Y with respect to Z. D) both a and c E) both b and c$ , the parameter c measures

refer to the following computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: -The nonlinear relation can be transformed into the following linear regression model:

refer to the following computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: -The estimated value of a is

refer to the following computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: -Which of the parameter estimates are statistically significant at the 90% level of confidence?

refer to the following nonlinear model which relates W to P, Q, and R: The computer output form the regression analysis is: -The nonlinear relation can be transformed into the following linear regression model:

refer to the following nonlinear model which relates W to P, Q, and R: The computer output form the regression analysis is: -Which of the parameter estimates are statistically significant at the 5% level of significance?

refer to the following nonlinear model which relates W to P, Q, and R: The computer output form the regression analysis is: -The estimated value of a is

In a multiple regression model, the coefficients on the independent variables measure

refer to the following: A manager wishes to estimate an average cost equation of the following form: where Q is the level of output. Letting Z = Q² and using least-squares estimation, the manager obtains the following computer output: -When output is 40 units, what is average cost?

refer to the following: A manager wishes to estimate an average cost equation of the following form: where Q is the level of output. Letting Z = Q² and using least-squares estimation, the manager obtains the following computer output: -When output is 20 units, what is average cost?

A simple linear regression equation relates G and D as follows: G = a + bD -The explanatory variable is _, and the dependent variable is __.

Quiz 4: Basic Estimation Techniques

In a linear regression equation of the form Y = a + bX, the slope parameter b shows

Which of the following is an example of a time-series data set?

In the linear model , a test of the hypothesis that parameter c equals zero is

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -What is the critical value of t at the 1% level of significance?

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -Which of the following statements is correct at the 1% level of significance?

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -The exact level of significance of Is

refer to the following: The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: ‪ -If X equals 20, what is the predicted value of Y?

In the nonlinear function , the parameter c measures

refer to the following computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: -The nonlinear relation can be transformed into the following linear regression model:

refer to the following computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: -The estimated value of a is

refer to the following computer output from estimating the parameters of the nonlinear model The computer output from the regression analysis is: -Which of the parameter estimates are statistically significant at the 90% level of confidence?

refer to the following nonlinear model which relates W to P, Q, and R: The computer output form the regression analysis is: -The nonlinear relation can be transformed into the following linear regression model:

refer to the following nonlinear model which relates W to P, Q, and R: The computer output form the regression analysis is: -Which of the parameter estimates are statistically significant at the 5% level of significance?

refer to the following nonlinear model which relates W to P, Q, and R: The computer output form the regression analysis is: -The estimated value of a is

In a multiple regression model, the coefficients on the independent variables measure

refer to the following: A manager wishes to estimate an average cost equation of the following form: where Q is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: -When output is 40 units, what is average cost?

refer to the following: A manager wishes to estimate an average cost equation of the following form: where Q is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: -When output is 20 units, what is average cost?

A simple linear regression equation relates G and D as follows: G = a + bD -The explanatory variable is _______, and the dependent variable is ________.

In the nonlinear function $In the nonlinear function , the parameter c measures A) \Delta Y / \Delta Z. B) the percent change in Y for a 1 percent change in Z. C) the elasticity of Y with respect to Z. D) both a and c E) both b and c$ , the parameter c measures

refer to the following: A manager wishes to estimate an average cost equation of the following form: where Q is the level of output. Letting Z = Q² and using least-squares estimation, the manager obtains the following computer output: -When output is 40 units, what is average cost?

refer to the following: A manager wishes to estimate an average cost equation of the following form: where Q is the level of output. Letting Z = Q² and using least-squares estimation, the manager obtains the following computer output: -When output is 20 units, what is average cost?

A simple linear regression equation relates G and D as follows: G = a + bD -The explanatory variable is _, and the dependent variable is __.