QMB Harvard final exam Final Assessment Test I

QMB Harvard final exam Final Assessment Test I

the least squares method of simple linear regression minimizes which of the following? a. SSR

b.  SSE

c.  SST - b. SSE

if the Durbin-Watson statistic has a value close to 0, which assumption is violated? a. normality of errors

b.  independence of errors

c.  homoscedaticity

d.  none of the above - b. independence of errors

the standard error of the estimate if a measure of: a. the total variation of the Y variable

b.  the variation around the simple regression line

c.  explained variation

d.  the variation of the X variable - b. the variation around the simple regression line

the coefficient of determination tells us:

a.  that the coefficient of correlation is larger than 1

b.  whether r has any significance

c.  that we should not partition the total variation

d.  the proportion of total variation that is explained - d. the proportion of total variation that is explained

in performing a regression analysis involving two numerical variables, we are assuming: a. the variances of X and Y are equal

b.  the variation around the line of regression is the same for each X variable

c.  that X and Y are independent

d.  all of the above - b. the variation around the line of regression is the same for each X variable

if the correlation coefficient (r)=1 then: a. the Y-intercept must equal 0

b.  the explained variation equals the unexplained variation

c.  there is no unexplained variation

d.  there is no explained variation - c. there is no unexplained variation

testing for the existence of correlation is equivalent to: a. testing for the existence of the slope 

b.  testing for the existence of the Y-intercept

c.  the confidence interval estimate for predicting Y

d.  none of the above - a. testing for the existence of the slope

the width of the prediction interval for the predicted value of Y is dependent on: a. the standard error of the estimate

b.  the value of X for which the prediction is being made

c.  the sample size

d.  all of the above - d. all of the above

when an additional explanatory variable is introduced into a multiple regression model, the coefficient of multiple determination will never decrease. a. true

b. false - a. true

variation due to the inherent variability in a system of operation is called: a. special or assignable causes

b.  common or chance causes

c.  explained variation

d.  the standard deviation - b. common or chance causes

according to the empirical rule, if the data form a "bell shaped" normal distribution, ______ percent of the observations will be contained within 2 standard deviations around the arithmetic mean. a. 68.26

b.  95.44

c.  93.75