Question 71) Which of the following conditions can be detect

71) Which of the following conditions can be detected from residual analysis?

A) Nonlinearity Nonconstant variance

B) Multicollinearity

C) A and B

D) A, B, and C

72) A dummy variable is also called a(n)

A) indicator variable.

B) dependent variable.

C) continuous variable.

D) response variable.

E) None of the above

73) If a qualitative variable has three categories, how many dummy variables are needed?

A) 0

B) 1

C) 2

D) 3

E) 4

74) The mean square error (MSE) is

A) denoted by s.

B) denoted by k.

C) the SSE divided by the number of observations.

D) the SSE divided by the degrees of freedom.

E) None of the above

75) Which of the following represents the underlying linear model for hypothesis testing?

A) Y = b0 + b1X + ?

B) Y = b0 + b1X

C) Y = ?0 + ?1X + ?

D) Y = ?0 + ?1X

E) None of the above

76) Which of the following statements is false concerning the hypothesis testing procedure for a regression model?

A) The F-test statistic is used.

B) The null hypothesis is that the true slope coefficient is equal to zero.

C) The null hypothesis is rejected if the adjusted r2 is above the critical value.

D) An ? level must be selected.

E) The alternative hypothesis is that the true slope coefficient is not equal to zero.

77) Suppose that you believe that a cubic relationship exists between the independent variable (of time) and the dependent variable Y. Which of the following would represent a valid linear regression model?

A) Y = b0 + b1X, where X = time3

B) Y = b0 + b1X3, where X = time

C) Y = b0 + 3b1X, where X = time3

D) Y = b0 + 3b1X, where X = time

E) Y = b0 + b1X, where X = time1/3

78) A prediction equation for starting salaries (in $1,000s) and SAT scores was performed using simple linear regression. In the regression printout shown below, what can be said about the level of significance for the overall model?

A) SAT is not a good predictor for starting salary.

B) The significance level for the intercept indicates the model is not valid.

C) The significance level for SAT indicates the slope is equal to zero.

D) The significance level for SAT indicates the slope is not equal to zero.

E) None of the above

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