In a study of employees at a local company, the human resource manager wants to develop a multiple regression model to explain the difference in employee wage rates.
She is thinking of including a variable, degree status, in which the following categories exist: no degree, H.S. degree, junior college degree, bachelor degree, graduate degree. One appropriate approach for including this variable is to code the categories 1, 2, 3, 4, and 5. Indicate whether the statement is true or false
Q. 2The sum of the residuals in a least squares regression model will be zero only when the correlation between the x and y variables is statistically significant.
Indicate whether the statement is true or false
Q. 3In a time series with quarterly sales data, assume that the seasonal index for the summer quarter has been found to be 0.87,
this can be interpreted to mean that sales tend to be 87 percent higher in the summer quarter when compared to the other quarters.
Indicate whether the statement is true or false
Q. 4If a contingency analysis test is performed with a 4 6 design, and if alpha = .05, the critical value from the chi-square distribution is 24.9958
Indicate whether the statement is true or false
Q. 5If it is known that a simple linear regression model explains 56 percent of the variation in the dependent variable and that the slope on the regression equation is negative,
then we also know that the correlation between x and y is approximately -0.75.
Indicate whether the statement is true or false
Q. 6In a contingency analysis the expected values are based on the assumption that the two variables are independent of each other.
Indicate whether the statement is true or false
Q. 7A regression equation that predicts the price of homes in thousands of dollars is y = 24.6 + 0.055x1 - 3.6x2, where x2 is a dummy variable that represents whether the house is on a busy street or not.
Here x2 = 1 means the house is on a busy street and x2 = 0 means it is not. From this we can conclude that on average homes that are on busy streets are worth 3600 more than homes that are not on busy streets. Indicate whether the statement is true or false
Quick Reply
