Question

In comparing the process of building a bivariate regression with a multiple-regression model, each begins by

identifying what variable?

A.The causal variable

B.The dependent variable

C.The independent variable

D.The constant variable

What should you consider if you are selecting independent variables for a multiple regression model?

A.The selection should be based on an understanding of the nature of the situation.

B.The coefficient of determination should be used to determine the explanatory power of the model.

C.The overlap in two or more independent variables will influence the dependent variable.

D.The logical selection will be based on the algebraic sign for each variable in the model.

In which of the following scenarios would a dummy variable be most useful?

A.What if we increase the price of greeting cards by 5%?

B.What if we stop selling greeting cards?

C.How have Valentine’s Day greeting cards affected our monthly sales for the past two years?

D.How do our greeting cards sales compare to our pencil sales?

A dummy variable has which one of the following characteristics:

A. It takes on a value of either 0 or 1 and replaces the independent variable.

B.It can be used to account for seasonality or other qualitative attributes.

C.It will have a value of 1 if the condition does not exist for an observation.

D.It will have a value of 0 if the condition does exist for an observation.

process of building a bivariate regression