The adjusted R2 value can be larger or smaller that the R2 values depending on the data set.
Indicate whether the statement is true or false
Q. 2Some stocks are referred to as cyclical stock because they tend to be in favor for several years and then out of favor for several years. This is a correct use of the term cyclical.
Indicate whether the statement is true or false
Q. 3If a decision maker has several potential independent variables to select from in building a regression model, the variable that, by itself, will always be the most effective in explaining the variation in the dependent variable will be the variable
that has a correlation closest to positive 1.00. Indicate whether the statement is true or false
Q. 4If two variables are spuriously correlated, it means that the correlation coefficient between them is near zero.
Indicate whether the statement is true or false
Q. 5A study was recently conducted in which people were asked to indicate which news medium was their preferred choice for national news. The following data were observed:
radio television newspaper
under 21 30 50 5
21-40 20 25 30
41 and over 30 30 50
Given this data, if we wish to test whether the preferred news source is independent of age with an alpha equal to .05, the critical value will be a chi-square value with 9 degrees of freedom.
Indicate whether the statement is true or false
Q. 6Harrison Hollow, an upscale eatery in Atlanta, tracks its sales on a daily basis. Recently, the manager stated that sales over the past three weeks have been very cyclical. Given the data she has, this statement is not a reasonable one to make.
Indicate whether the statement is true or false
Q. 7A correlation matrix shows the correlation between each independent variable and the dependent variable but gives no information about the potential for multicollinearity problems.
Indicate whether the statement is true or false
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