MGT 6203 FINAL EXAM_MGT 6203 SAMPLE FINAL EXAM Questions and Answers 2020

SAMPLE FINAL EXAM QUESTIONS 2020 Theory - 10 questions (Final Exam will have 20 question) Q1. We have developed a regression model: Rent = b0+ b1* House_WithPool where House_WithPool is a dummy variable set to 1 if a house has a Pool and is set to 0 otherwise. The Regression summary output is Estimate S.E. t Value Pr|t| Intercept 1542.149 2.954 12.58*** .001 House_WithPool 253.666 3.123 11.42*** .001 What is the average rent of a house with Pool given the summary output? a. 1542.149 b. 1795.815 c. 1288.483 d. 253.666 Answer: B Q2. Why do we use Log-Transformations when we perform transformation of variables? A. To achieve a more linear relationship B. To make a distribution more normal C. To make the variance more constant D. All the above Solution: D) A, B and C are the objectives of performing Log Transformations Q3. What is the relation between Correlation and Covariance