Practice Midterm

Questions 1 to 6

A regression equation was estimated using 3 explanatory variables and the corresponding ANOVA
table is given below. Consider this as the first model

ANOVA
d Significanc
  f SS MS F eF
30,24,30 596.41
Regression 6 3
17,62,95
Residual 7 1,690
Total      
The regression equation was re-estimated after adding some more explanatory (while retaining the
earlier 3 explanatory variables) and the corresponding ANOVA table is presented below. Consider
this as the full model

ANOVA
Significanc
  df SS MS F eF
30,96,36 317.407
Regression 7 8
5.4E-231
Residual 1,040
Total 1,046      
Answer Questions 1 to 6 based on the above two ANOVA tables.

1. What is the Residual Mean Square for the full model?(PPT – Session 5)
A. 1690 B. 1626$ C. 10,08,102 D. None of these

2. What is the Regression degrees of freedom for the full model?

A. 6$ B. 3 C. 5 D. none of these

3. What is the value of R2 for the full model?

A. 71.23% B. 63.17% C. 64.67$ D. Cannot be calculated

4. What is the denominator degrees of freedom corresponding to the “F” test in the first
model?
A. 1043$ B. 1044 C. 1046 D. none of these

5. What is your conclusion based on the above two models?

A. The RMSE of the full model is less than that of the first model and hence the full model is
better$
B. The additional explanatory variables should not be included in the model because there is a
decrease in the F value
C. All The additional explanatory variables will definitely turn out to be significant
D. The additional explanatory variables can be added in the model only if there is an increase in
R2
6. What is the adjusted R2 for the first model?
A. 0.6307$ B. 0.3693 C. 0.7948 D. None of these
Questions 7 to 12
A Logistic regression equation was built to predict customer churn with two independent variables
namely Customer Income (CI) and length of Customer Association (CA). The Hosmer-Lemeshow test
used 8 classes (groups) and yielded a Chi-Square value of 21.82.
Answer questions 7 to 12 below.

7. We would like to test the following two null hypothesis H 0: Β1 = 0 and H0: Β2 = 0. What is the
degrees of freedom corresponding to each of the above hypotheses tests?(Walds)
Direct 1(Pavan)
A. 1$ B. 2 C. 151 D. none of these

8. Given that – 2LL0 is 158.23 and – 2LL1 is 152.69, you would like to carry out the likelihood
ratio test. What is the degrees of freedom corresponding to this test?
Number of independent variables
A. 1 B. 2$ C. 151 D. None of these

9. What is the degrees of freedom associated with the Hosmer and Lemeshow test?
A. 8 B. 7 C. 6$ D. 9
Number of classes – number of parameters(Yes/No)

10. What is the p-value associated with the Hosmer and Lemeshow test?
A. 0.0130 B. 0.0013$ C. 0.0053 D. 0.0027

11. What is the conclusion based on the Hosmer Lemeshow test?

A. The logistic regression model fits the data
B. The logistic regression model does not fit the data$
C. The Hosmer and Lemeshow test is not applicable in this example
D. None of these
The details of 3 pairs of claims (based on similar logistic equation, but different dataset) are given
below.

Claim
Fraudule Probabilit
Pairs Claim no. Amoun
nt or not y
t
46 P Dis 0.4183
1
78 F Dis 0.7216
26 P P 0.6148
2
43 F F 0.5061
82 F Dis 0.3413
3
94 P Dis 0.2165

12. Which of the above three pairs is/are discordant?

A. Pair no. 1 B. Pairs 1 and 2 C. pairs 2 and 3 D. Pairs 1 and 3$