Collinearity - Study guides, Class notes & Summaries

Most common problems in fitting linear regression - 1. Non-linearity of the responsepredictor relationships 2. Correlation of error terms 3. Non-Constant variance of error terms 4. Outliers 5. High-leverage points 6. Collinearity How to check for linearity - 1. Check the scatterplot of Y vs. X variable. Is it linear? 2. OR residual plot vs. fitted plot (especially useful in multiple regression). We want to see no patterns in this plot

Gen Bus 307 exam 2 Questions And Answers quadratic regression model - ANS-Yi=B0 + B1X1 + B2X1^2 Fstat - ANS-MSR/MSE if greater than critical value, reject null MSR - ANS-SSR/d.f. MSE - ANS-SSE/d.f. Testing Quadratic Effect - ANS-Ho: B2 = 0 (no improvement) H1: B2 not equal to 0 (improvement) adjusted R^2 formula - ANS-1 - ( (1-r^2) * (n-1)/(n-k-1) ) square root transformation - ANS-used to overcome violations of equal variance assumption as well as to transform a model whose form is n...

MAR 3613 FINAL EXAM QUESTIONS & ANSWERS 2024/2025 (T/F) Our group project mainly relied on secondary data - ANSWERSF (T/F) Our group project mainly relied on primary data - ANSWERST (T/F) The threshold to determine collinearity problem is 0.3 and that to determine significance is 0.05. - ANSWERST (T/F) When one uses regression to predict, one should focus on the significant independent variables. - ANSWERST (T/F) Survey is the most important method to collect primary data. - ANS...

In the equation, y=β0+β1x1+β2x2+u β2 is a(n) _____. a. independent variable b. dependent variable c. slope parameter d. intercept parameter correct answers C Consider the following regression equation: y=β1+β2x1+β2x2+u . What does β1 imply? a. β1 measures the ceteris paribus effect of x1 on x2 b. β1 measures the ceteris paribus effect of y on x1 c. β1 measures the ceteris paribus effect of x1 on y. d. β1 measures the ceteris paribus effect of x1 on u correct answers C ...

WPC 300 ACTUAL EXAM QUESTIONS WITH REVISED ANSWERS ALL CORRECT What would be the null hypothesis for testing a linear regression model with profit as the dependent variable and sales as the independent variable? - Answer- There is no linear relationship between profit and sales Which of the following assumptions is not true for multiple linear regression? - Answer- There will be a multi-collinearity effect A market analyst is developing a regression model to predict monthly household e...

In the equation, y=β0+β1x1+β2x2+u β2 is a(n) _____. a. independent variable b. dependent variable c. slope parameter d. intercept parameter correct answers C Consider the following regression equation: y=β1+β2x1+β2x2+u . What does β1 imply? a. β1 measures the ceteris paribus effect of x1 on x2 b. β1 measures the ceteris paribus effect of y on x1 c. β1 measures the ceteris paribus effect of x1 on y. d. β1 measures the ceteris paribus effect of x1 on u correct answers C ...

2a) Let income denote the person's income and age denote the persons age. We would like to run an OLS regression on the equation BMI=B0+B1fast+B2income+B3age+U. Write down all the assumptions that guarantee that the OLS estimators of the coefficients of this equation are unbiased correct answers 1)Linearity- E[U|fast, income, age]=0, The expected value of y is linear in X1,X2,X3 2)Exogeneity- E[U|fast, income, age]=0, unobservables are constant and do not effect BMI 3)Random Sampling- The dat...

QMB 3200 Final Exam Questions With 100% Correct Answers 2024 A variable that cannot be measured in numerical terms is called a _____. a. dependent variable b. constant variable c. qualitative variable d. non-measurable random variable - answerc. qualitative variable The difference between the observed value of the dependent variable and the value predicted by using the estimated regression equation is the _____. a. standard error b. residual c. predicted interval d. variance - answer...

QMB 3200 Final Exam Questions With 100% Correct Answers 2024 A variable that cannot be measured in numerical terms is called a _____. a. dependent variable b. constant variable c. qualitative variable d. non-measurable random variable - answerc. qualitative variable The difference between the observed value of the dependent variable and the value predicted by using the estimated regression equation is the _____. a. standard error b. residual c. predicted interval d. variance - answer...

WPC 300 Exam Questions Complete Solutions Current Update (Verified A+ Pass) For a normal distribution mean is ___ to median - Answers - equal Standard deviation of a normal distribution is a ___? - Answers - Measure of data dispersion Which of the following is an example of a measure of dispersion? - Answers - Variance Which of the following is an example of a sample? - Answers - The number of IT employees out of all employees working in an office of Google Which of the following ...