(Solved): WPC 300 Quiz 5: Regression : Score for this attempt: 10 out of 10...

WPC 300

Quiz 5: Regression

Score for this attempt: 10 out of 10

Question 1
1 / 1 pts
A market analyst is developing a regression model to predict monthly household expenditures on groceries as a function of family size, household income, and household neighborhood (urban, suburban, and rural). The "neighborhood" variable in this model is ________.

• an independent variable
• a continuous variable
• a dependent variable
• a linear variable

  
Question 2
1 / 1 pts
The unexplained variance in the regression analysis is also known as:

• Predicted variance
• Regression variance
• Total variance
• Residual variance

 
Question 3
1 / 1 pts
Which of the following is true about multi-collinearity?

• The regression coefficients become clearer and are easier to interpret.
• The effect of an independent variable on the dependent variable becomes easy to isolate.
• The P-value reduces significantly, leading to rejection of the null hypothesis.
• It is measured using a measure called variance inflation factor (VIF).

  
Question 4
1 / 1 pts
A correlation coefficient between “college entrance exam” grades and scholastic achievement was found to be -1.08. On the basis of this, you would tell the university that:

• The exam is a poor predictor of success.
• They should hire a new statistician.
• Students who do best on this exam will make the worst students.
• The entrance exam is a good predictor of success.

  
Question 5
1 / 1 pts
The value of R-Squared always falls between ________ and ________, inclusive.

• 0 and -1
• 0 and 1
• -infinity to + infinity
• -1 and +1

  
Question 6
1 / 1 pts
What would be the null hypothesis for testing a linear regression model with profit as the dependent variable and sales as the independent variable?

• There is a positive relationship between profit and sales.
• There is a linear relationship between profit and sales that can be either positive or negative.
• There is no linear relationship between profit and sales.
• There is a negative relationship between profit and sales.

 
 
Question 7
1 / 1 pts
Which of the following statement is true based on the following regression equation?
IQ = 4.0 + Reading Label * 5.6

• A unit point change in IQ will result in 9.6-point increase in reading label.
• Reading label is not a good predictor of IQ.
• A unit point change in IQ will result in 5.6-point increase in reading label.
• A unit point change in reading label will increase IQ by 5.6 point. 

 
Question 8
1 / 1 pts
The correlation coefficient between the age of a vehicle and the money spent to repair it is 0.9. Which of the following statement is true?

• 90% of the repair cost will be explained by the age of the vehicle
• 81% of money spent on repairs is explained by the age of the vehicle
• 81% of the variation in the money spent on repairs is explained by the age of the vehicle
• 90% of the money spent on repair is explained by the age of the vehicle

 
Question 9
1 / 1 pts
A manager wishes to predict the annual cost (y) of an automobile based on the number of miles (x) driven. The following model was developed: y = $1500 + 0.36x. If a car is driven 15000 miles in a year, the model predicts the annual cost of the car to be:

• $2090
• $3850
• $6900
• $7400 

 
Question 10
1 / 1 pts
Which of the following assumptions is not true for multiple linear regression?

• There will be a multi-collinearity effect.
• The relationship between dependent and independent variables is linear.
• The residuals are normally distributed.
• The independent variables are not correlated.
•