Question #1 of 13 Question ID: 1572892
The estimated slope coefficient in a simple linear regression is:
the predicted value of the dependent variable, given the actual value of the
A)
independent variable.
the change in the independent variable, given a one-unit change in the dependent
B)
variable.
the ratio of the covariance of the regression variables to the variance of the
C)
independent variable.
Question #2 of 13 Question ID: 1572899
Given the relationship: Y = 2.83 + 1.5X
What is the predicted value of the dependent variable when the value of the independent
variable equals 2?
A) 2.83.
B) –0.55.
C) 5.83.
Question #3 of 13 Question ID: 1572901
When there is a linear relationship between an independent variable and the relative change
in the dependent variable, the most appropriate model for a simple regression is:
A) the log-log model.
B) the log-lin model.
C) the lin-log model.
Question #4 of 13 Question ID: 1572898
Consider the following analysis of variance (ANOVA) table:
Source Sum of squares Degrees of freedom Mean sum of squares
Regression 556 1 556
Error 679 50 13.5
Total 1,235 51
The R2 for this regression is closest to:
A) 0.45.
B) 0.55.
C) 0.82.
Question #5 of 13 Question ID: 1572895
The coefficient of determination for a linear regression is best described as the:
percentage of the variation in the dependent variable explained by the variation of
A)
the independent variable.
percentage of the variation in the independent variable explained by the variation of
B)
the dependent variable.
C) covariance of the independent and dependent variables.
Question #6 of 13 Question ID: 1572894
A simple linear regression is said to exhibit heteroskedasticity if its residual term:
A) does not have a constant variance.
B) is nonnormally distributed.
C) is not independently distributed.
Question #7 of 13 Question ID: 1572900
To determine a confidence interval around the predicted value from a simple linear
regression, the appropriate degrees of freedom are:
A) n – 1.
B) n.
C) n – 2.
Question #8 of 13 Question ID: 1572893
Which of the following is least likely an assumption of linear regression?
A) The variance of the error terms each period remains the same.
B) The error terms from a regression are positively correlated.
C) Values of the independent variable are not correlated with the error term.
Question #9 of 13 Question ID: 1572890
A simple linear regression is a model of the relationship between:
A) one dependent variable and one or more independent variables.
B) one dependent variable and one independent variable.
C) one or more dependent variables and one or more independent variables.
Question #10 of 13 Question ID: 1572897
Consider the following analysis of variance (ANOVA) table:
Source Sum of squares Degrees of freedom Mean sum of squares
Regression 550 1 550.000
Error 750 38 19.737
Total 1,300 39
The F-statistic for the test of the fit of the model is closest to:
A) 0.42.
B) 0.97.
C) 27.87.
Question #11 of 13 Question ID: 1572902
To account for logarithmic variables, functional forms of simple linear regressions are
available if:
the independent variable is logarithmic, but not if the dependent variable is
A)
logarithmic.
B) either the dependent or independent variable is logarithmic, but not both.
C) either or both of the dependent and independent variables are logarithmic.
Question #12 of 13 Question ID: 1572896
A simple linear regression is performed to quantify the relationship between the return on
the common stocks of medium-sized companies (mid-caps) and the return on the S&P 500
index, using the monthly return on mid-cap stocks as the dependent variable and the
monthly return on the S&P 500 as the independent variable. The results of the regression
are shown below:
Coefficient Standard Error of Coefficient t-Value
Intercept 1.71 2.950 0.58
S&P 500 1.52 0.130 11.69
Coefficient of determination = 0.599
The strength of the relationship, as measured by the correlation coefficient, between the
return on mid-cap stocks and the return on the S&P 500 for the period under study was:
A) 0.130.
B) 0.774.
C) 0.599.
Question #13 of 13 Question ID: 1572891
In a simple regression model, the least squares criterion is to minimize the sum of squared
differences between:
A) the intercept term and the residual term.
B) the predicted and actual values of the dependent variable.
C) the estimated and actual slope coefficient.
