Mgmt 6203 summer
2020
1. Could a variable, say price, be either a dependent or an independent vari- able?: True
2. A variable that takes binary values (pass/fail or true/false) cannot be a dependent variable.: False
3. The mean of a variable that has a right-skewed distribution is smaller than the median.: False
4. The correlation coefficient can capture the strength of both linear and non- linear relationships.: False
5. Explained Deviation + Unexplained Deviation: Total Deviation
6. The total deviation at observation (xi , yi ) is 5yš5(bŠar): True
7. In OLS, the estimates of slope and intercept do not depend on the sample being used.: False
8. A measure of the overall strength of the relationship between the dependent variable (Y) and independent
variables (X): R squared
9. R2 = 0, implies that X values account for all of the variation in the Y values Answer:: False
10.R2 can take any value from - infinity to + infinity: False
11.In regression output, H0:is the parameter is 0: True
12.What does ceteris paribus mean?: keeping all else constant
13.The square root of R squared is: The correlation coefficient
14.The F test null hypothesis is: All coefficients are 0
15.As you add variables, r squared will not decrease.: True
16.What test is used to compare two models?: F Test
17.What test is used to detect autocorrelations in a linear model?: Durbin-Wat- son
18.The residuals vs. fitted values plot can test constant variance assump- tion?
• If no: True
19.Autocorrelation is the correlation between each of the ei variables.: True
20.Heteroskedasticity means having constant Error Variance.: False
21.One way to visualize outliers is to plot residuals (or, better yet, standard- ized
residuals) against predicted values of y.: True
22.What are observations that have a predictor value outside the normal range of observations: Leverage
points
23.One statistic to identify influential points is?: Cooks Distance
24.To detect multicollinearity, one approach is to use what?: Variable inflation factor VIF
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2020
1. Could a variable, say price, be either a dependent or an independent vari- able?: True
2. A variable that takes binary values (pass/fail or true/false) cannot be a dependent variable.: False
3. The mean of a variable that has a right-skewed distribution is smaller than the median.: False
4. The correlation coefficient can capture the strength of both linear and non- linear relationships.: False
5. Explained Deviation + Unexplained Deviation: Total Deviation
6. The total deviation at observation (xi , yi ) is 5yš5(bŠar): True
7. In OLS, the estimates of slope and intercept do not depend on the sample being used.: False
8. A measure of the overall strength of the relationship between the dependent variable (Y) and independent
variables (X): R squared
9. R2 = 0, implies that X values account for all of the variation in the Y values Answer:: False
10.R2 can take any value from - infinity to + infinity: False
11.In regression output, H0:is the parameter is 0: True
12.What does ceteris paribus mean?: keeping all else constant
13.The square root of R squared is: The correlation coefficient
14.The F test null hypothesis is: All coefficients are 0
15.As you add variables, r squared will not decrease.: True
16.What test is used to compare two models?: F Test
17.What test is used to detect autocorrelations in a linear model?: Durbin-Wat- son
18.The residuals vs. fitted values plot can test constant variance assump- tion?
• If no: True
19.Autocorrelation is the correlation between each of the ei variables.: True
20.Heteroskedasticity means having constant Error Variance.: False
21.One way to visualize outliers is to plot residuals (or, better yet, standard- ized
residuals) against predicted values of y.: True
22.What are observations that have a predictor value outside the normal range of observations: Leverage
points
23.One statistic to identify influential points is?: Cooks Distance
24.To detect multicollinearity, one approach is to use what?: Variable inflation factor VIF
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