Question 1

A multiple regression model includes the term (X₁)(X₂). The term implies that: A) the independent variables are correlated. B) there is only one independent variable in the regression model. C) the effect of X₁ on the dependent variable is independent of the value of X₂. D) the effect of X₁ on the dependent variable depends on the value of X₂.

Accepted Answer

The term (X₁)(X₂) suggests an interaction effect between the variables X₁ and X₂, where the effect of X₁ on the dependent variable depends on the value of X₂. Therefore, the correct choice is D. Choices A, B, and C are not correct because they do not reflect the nature of the interaction term.

Question 2

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income.  What is this table called?
A) Net regression coefficients
B) Coefficients of nondetermination
C) Analysis of variance
D) Correlation matrix

Accepted Answer

The table provided shows the correlations between the predictor variables (education, job, age) and the outcome variable (income). This is known as a correlation matrix, which is commonly used in multiple regression analyses to assess the degree of association between variables. Therefore, choice D is the best answer. Choice A (net regression coefficients) refers to a different type of table that shows the regression coefficients after controlling for all other variables in the model. Choice B (coefficients of nondetermination) and choice C (analysis of variance) are not accurate descriptions of the table provided.

Question 3

Consider a regression model involving more than one independent variable. The test used to determine if the relationship between the dependent variable and the set of independent variables is significant is the _______.
A) z-test
B) test
C) chi-square test
D) F-test

Accepted Answer

The F-test, also known as the analysis of variance (ANOVA), is used to determine if there is a significant relationship between the dependent variable and the set of independent variables in a regression model involving more than one independent variable. The F-test compares the variance of the regression model to the variance of the residuals, and if the ratio of these variances is sufficiently large, we reject the null hypothesis and conclude that the relationship between the variables is significant. The other options (A, B, and C) are not appropriate tests for this scenario.

Question 4

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income.  Which is the dependent variable?
A) Income
B) Age
C) Education
D) Job

Accepted Answer

The dependent variable is the variable being predicted or explained by the other variables in the regression equation. In this case, income is the dependent variable, while age, education, and job are independent variables being used to predict income.

Question 5

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  In the regression model, which of the following are dummy variables?
A) Intercept
B) Service
C) Service and gender
D) Gender and job

Accepted Answer

The answer of A manager at a local bank analyzed...

Question 6

In an ANOVA table for a multiple regression analysis, the global test of significance is based on the _________.
A) Treatment mean square divided by the error variation
B) Block and error variation
C) Treatment mean square and block mean square
D) Regression mean square divided by the mean square error

Accepted Answer

The global test of significance in an ANOVA table for a multiple regression analysis is based on the regression mean square divided by the mean square error. This is because the regression mean square represents the variation among the groups that is explained by the model, while the mean square error represents the variation within the groups that is not explained by the model. The F statistic for the global test of significance is calculated as the ratio of these two variances, and a large F value indicates that there is a significant difference between the groups that is not due to chance.

Question 7

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  Based on the hypothesis tests for the individual regression coefficients, ____________.
A) All the regression coefficients are not equal to zero
B) "Job" is the only significant variable in the model
C) Only months of service and gender are significantly related to monthly salary
D) "Service" is the only significant variable in the model

Accepted Answer

The answer of A manager at a local bank analyzed...

Question 8

A multiple regression model includes (X₁)(X₂). The term is called ________. A) a dependent variable B) an interaction C) an error D) an intercept

Accepted Answer

The term (XS1U1B11S1U1B0)(XS1U1B12S1U1B0) represents an interaction between the predictors XS1U1B11 and XS1U1B12. Therefore, the correct answer is B, an interaction.

Question 9

A researcher is studying the effect of 10 different variables on a critical measure of business performance. A multiple regression analysis including all 10 variables is performed. What criterion could be used to eliminate 1 of the 10 variables? A) Multiple R² B) Largest p-value C) Smallest p-value D) Smallest regression coefficient

Accepted Answer

The largest p-value should be used as the criterion to eliminate one of the 10 variables. Variables with large p-values indicate that they are not statistically significant predictors of the critical measure of business performance and can be removed from the model. This helps simplify the model and improve its interpretability.

Question 10

A variable that can assume only one of two possible outcomes that take on the values of either 0 or 1, and is used to incorporate the effect of qualitative variables in a regression model is referred to as ________.
A) a dummy variable
B) a constant endogenous variable
C) an interaction
D) a constant

Accepted Answer

A dummy variable is used to incorporate the effect of qualitative variables in a regression model. It can only take on the values of either 0 or 1.

Question 11

Twenty-one executives in a large corporation were randomly selected to study the effect of several factors on annual salary (expressed in $000s). The factors selected were age, seniority, years of college, number of company divisions they had been exposed, to and the level of their responsibility. The results of the regression analysis follow:  Which one of the following is the dependent variable?
A) Age
B) Seniority
C) Level of responsibility
D) Annual salary

Accepted Answer

The results of the regression analysis indicate that the dependent variable is annual salary.

Question 12

A multiple regression model includes the term (X₁)(X₂). If the hypothesis is that the term's regression coefficient is NOT rejected, what is a valid conclusion? A) The independent variables are correlated. B) There is only one independent variable in the regression model. C) The effect of X₁ on the dependent variable is independent of the value of X₂. D) The effect of X₁ on the dependent variable depends on the value of X₂.

Accepted Answer

The answer of A multiple regression model includes the term...

Question 13

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  Based on the hypothesis tests for the individual regression coefficients, _____________.
A) All the regression coefficients are not equal to zero
B) "Job" is the only non-significant variable in the model
C) The intercept is the only significant variable in the model
D) "Service" is the only significant variable in the model

Accepted Answer

The answer of A manager at a local bank analyzed...

Question 14

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  The results for the variable gender show that ______________.
A) Males average $222.78 more than females in monthly salary
B) Females average $222.78 more than males in monthly salary
C) Gender is not related to monthly salary
D) Gender and months of service are correlated

Accepted Answer

From the ANOVA results, the coefficient for the variable gender is -222.78, indicating that on average, males earn $222.78 more than females in monthly salary.

Question 15

A researcher is studying the relationship between 10 different variables and a critical measure of business performance. What method can be used to select the best set of variables to predict performance?
A) Stepwise regression
B) ANOVA
C) Simple linear regression
D) Residual analysis

Accepted Answer

Stepwise regression is a method used to select the best set of variables to predict a dependent variable. It involves adding and removing predictor variables from the model based on their statistical significance and contribution to the overall prediction accuracy. This method can help identify the most important variables that influence business performance, while avoiding the inclusion of unnecessary or redundant variables. ANOVA, simple linear regression, and residual analysis are not designed to select a subset of predictors from a larger pool of variables.

Question 16

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male) and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  Based on the ANOVA, the multiple coefficient of determination is _________.
A) 5.957%
B) 59.3%
C) 40.7%
D) Cannot be computed

Accepted Answer

The answer of A manager at a local bank analyzed...

Question 17

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income.  Which independent variable has the weakest association with the dependent variable?
A) Income
B) Age
C) Education
D) Job

Accepted Answer

The answer of The following correlations were computed as part...

Question 18

A researcher is studying the effect of 10 different variables on a critical measure of business performance. In selecting the best set of independent variables to predict the dependent variable, the stepwise regression technique is used. How are variables selected for inclusion in the model? A) Highest increase in the multiple R² B) Largest p-value C) Smallest p-value D) Smallest regression coefficient

Accepted Answer

The answer of A researcher is studying the effect of...

Question 19

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income.  Which independent variable has the strongest association with the dependent variable?
A) Income
B) Age
C) Education
D) Job

Accepted Answer

The independent variable with the strongest association with the dependent variable (income) is education. This is because it has the highest correlation coefficient with income compared to the other independent variables.

Question 20

A manager at a local bank analyzed the relationship between monthly salary and three independent variables: length of service (measured in months), gender (0 = female, 1 = male), and job type (0 = clerical, 1 = technical). The following ANOVA summarizes the regression results:  Based on the ANOVA and a 0.05 significance level, the global null hypothesis test of the multiple regression model ___________.
A) Will be rejected and conclude that monthly salary is related to all of the independent variables
B) Will be rejected and conclude that monthly salary is related to at least one of the independent variables
C) Will not be rejected
D) Will show a high multiple coefficient of determination

Accepted Answer

The ANOVA table shows a significant F-statistic and a p-value less than 0.05, indicating that the null hypothesis of no relationship between monthly salary and any of the independent variables can be rejected. Therefore, we can conclude that monthly salary is related to at least one of the independent variables.

Quiz 14: Multiple Regression Analysis

A multiple regression model includes the term (X₁) (X₂) . The term implies that:

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. What is this table called?

Consider a regression model involving more than one independent variable. The test used to determine if the relationship between the dependent variable and the set of independent variables is significant is the _______.

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which is the dependent variable?

In an ANOVA table for a multiple regression analysis, the global test of significance is based on the _________.

A multiple regression model includes (X₁) (X₂) . The term is called ________.

A researcher is studying the effect of 10 different variables on a critical measure of business performance. A multiple regression analysis including all 10 variables is performed. What criterion could be used to eliminate 1 of the 10 variables?

A variable that can assume only one of two possible outcomes that take on the values of either 0 or 1, and is used to incorporate the effect of qualitative variables in a regression model is referred to as ________.

A multiple regression model includes the term (X₁) (X₂) . If the hypothesis is that the term's regression coefficient is NOT rejected, what is a valid conclusion?

A researcher is studying the relationship between 10 different variables and a critical measure of business performance. What method can be used to select the best set of variables to predict performance?

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which independent variable has the weakest association with the dependent variable?

A researcher is studying the effect of 10 different variables on a critical measure of business performance. In selecting the best set of independent variables to predict the dependent variable, the stepwise regression technique is used. How are variables selected for inclusion in the model?

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which independent variable has the strongest association with the dependent variable?

Quiz 14: Multiple Regression Analysis

A multiple regression model includes the term (X1) (X2) . The term implies that:

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. What is this table called?

Consider a regression model involving more than one independent variable. The test used to determine if the relationship between the dependent variable and the set of independent variables is significant is the _______.

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which is the dependent variable?

In an ANOVA table for a multiple regression analysis, the global test of significance is based on the _________.

A multiple regression model includes (X1) (X2) . The term is called ________.

A researcher is studying the effect of 10 different variables on a critical measure of business performance. A multiple regression analysis including all 10 variables is performed. What criterion could be used to eliminate 1 of the 10 variables?

A variable that can assume only one of two possible outcomes that take on the values of either 0 or 1, and is used to incorporate the effect of qualitative variables in a regression model is referred to as ________.

A multiple regression model includes the term (X1) (X2) . If the hypothesis is that the term's regression coefficient is NOT rejected, what is a valid conclusion?

A researcher is studying the relationship between 10 different variables and a critical measure of business performance. What method can be used to select the best set of variables to predict performance?

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which independent variable has the weakest association with the dependent variable?

A researcher is studying the effect of 10 different variables on a critical measure of business performance. In selecting the best set of independent variables to predict the dependent variable, the stepwise regression technique is used. How are variables selected for inclusion in the model?

The following correlations were computed as part of a multiple regression analysis that used education, job, and age to predict income. Which independent variable has the strongest association with the dependent variable?

A multiple regression model includes the term (X₁) (X₂) . The term implies that:

A multiple regression model includes (X₁) (X₂) . The term is called ________.

A multiple regression model includes the term (X₁) (X₂) . If the hypothesis is that the term's regression coefficient is NOT rejected, what is a valid conclusion?