In multiple regression analysis, there are two or more dependent variables.

1.   ?    True
2.   ?    False

The least squares method cannot be used to develop the coefficients of the estimated regression equation for multiple regression analysis.

1.   ?    True
2.   ?    False

An F test can be used to test for a significant relationship in multiple regression analysis.

1.   ?    True
2.   ?    False

The number of degrees of freedom for the error sum of squares in multiple regression analysis decreases as the number of independent variables increases.

1.   ?    True
2.   ?    False

The number of degrees of freedom in the t test for the significance of individual parameters in multiple regression analysis is always n - 3.

1.   ?    True
2.   ?    False

Consider a regression model in which two independent variables, x₁and x₂ are used to explain the dependent variable, y. In the test of the hypotheses H_o : b1 = b2 = 0 and H_a : either b₁ or b₂or both ¹ 0, the test statistic MSR/MSE has a sampling distribution that is the

1.   ?    t distribution
2.   ?    F distribution
3.   ?    normal distribution
4.   ?    chi-square distribution

Consider a regression model in which two independent variables, x1 and x2 are used to explain the dependent variable, y. Which sampling distribution is used to test H₀ : b₂ = 0, H_a : b₂ ¹ 0?

1.   ?    t distribution
2.   ?    F distribution
3.   ?    normal distribution
4.   ?    chi-square distribution

A car-rental company wanted to predict the annual operating cost (y) of its cars using both the number of miles a car was driven (x¹) and the size of the car (subcompact, compact, midsize, and full-size). To incorporate the effect of the size of the car, the following dummy variables were defined.
X² X³ X⁴ Car size
0 0 0 subcompact
1 0 0 compact
0 1 0 midsize
0 0 1 full size
The mean annual operating cost for a compact car is

1.   ?    b₀
2.   ?    b ₀ + b1x1 + b₂x₂
3.   ?    b0 + b_{1x1 + b2}
4.   ?    b₀ + b₁x₁ + b₃
5.   ?    b₀ + b₁x₁+ b₄

A car-rental company wanted to predict the annual operating cost (y) of its cars using both the number of miles a car was driven (x₁) and the size of the car (subcompact, compact, midsize, and full-size). To incorporate the effect of the size of the car, the following dummy variables were defined.
X₂ X₃ X₄ Car size
0 0 0 subcompact
1 0 0 compact
0 1 0 midsize
0 0 1 full size
The mean annual operating cost for a subcompact car is

1.   ?    b_o
2.   ?    b_o+ b₁x₁
3.   ?    b_o + b₁x₁ + b₂
4.   ?    b_o + b₁x₁ + b₃
5.   ?    b_o + b₁x₁ + b₄

A car-rental company wanted to predict the annual operating cost (y) of its cars using both the number of miles a car was driven and the size of the car (subcompact, compact, midsize, and full-size). To incorporate the effect of the size of the car, the following dummy variables were defined.
X2 X3 X4 Car size
0 0 0 subcompact
1 0 0 compact
0 1 0 midsize
0 0 1 full size
The difference in mean annual operating costs between a full-size car and a subcompact car is

1.   ?    b_o
2.   ?    b₄
3.   ?    b_o + b_o
4.   ?    b_o + b₁x₁ + b₄

Which of the following is not an assumption about the error term in the multiple regression model?

1.   ?    The error term has variance 0
2.   ?    The values of the error term are independent.
3.   ?    The values of the error term are normally distributed.
4.   ?    All of the above are assumptions about the error term.
5.   ?    None of the above.

If two or more independent variables are strongly correlated, the following exists.

1.   ?    Influential Observation
2.   ?    Leverage
3.   ?    Multicollinearity
4.   ?    Outlier

Standardized residuals cannot be used to test the assumptions about multiple regression.

1.   ?    True
2.   ?    False

Standardized residuals can be used to detect outliers.

1.   ?    True
2.   ?    False

Qualitative independent variables cannot be used in regression analysis.

1.   ?    True
2.   ?    False