ALLAN MARK L.
PAJARES
BSEE 2A
MULTIPLE LINEAR REGRESSION
QUIZ
IDENTIFICATION
1. In multiple linear regression, the
_______________ variable is the variable that
we are trying to predict.
Ans. Dependent
2. The _______________ is a measure of how
well the model fits the data, and can take on
values between 0 and 1.
Ans. Coefficient of determination
(R-squared)
3. The _______________ term in the
regression equation represents the predicted
value of the dependent variable when all the
independent variables are set to zero.
Ans. Intercept
4. The coefficients of the least squares
regression line are determined by minimizing
the sum of the squares of the
_______________ Ans. Residuals
5. The _______________ is a statistical test
that is used to determine whether all the
independent variables in the model are jointly
significant in predicting the dependent
variable.
Ans. F-test
6. The _______________ adjusts the
coefficient of determination (R-squared) to
account for the number of independent
variables in the model and penalizes the
model for including variables that do not
significantly improve the model's predictive
power.
Ans. Adjusted R-squared
7-8. Give 2 Types of Test in Multiple Linear
Regression
● Test for significance of regression
● Test on individual regression
9-10. Give the general equation of Multiple
Linear Regression
𝑌 = β0 + β1𝑥1 + β2𝑥2 + ⋯ + β𝑛𝑥𝑛 + ε
TRUE OR FALSE
1. Multiple linear regression is used to model
the relationship between a dependent variable
and multiple independent variables.
True.
2. The coefficient of determination (R-squared)
can take on any value between 0 and 1,
inclusive.
True.
3. In multiple linear regression, the goal is to
minimize the sum of squared errors between
the predicted values and the actual values.
True.
4. A residual is computed as a y‐coordinate
from the data minus a y‐coordinate predicted
by the line. True
5. We use t-test if we want to test the
significance of individual variables and ANOVA
for the overall model. True
6. The two approaches that can be used in
getting the coefficients in multiple linear
regression. The Least square approach and
matrix approach. True
7. Rejection of alternative implies that at least
one of the regressor variables x1, x2, , xk
contributes significantly to the model. False
(Rejection of null hypothesis)
2
8. The adjusted 𝑅 statistic penalizes the
analyst for adding terms to the model. It can
help guard against overfitting (including
regressors that are not really useful) True
9. The degrees of freedom of the
Error/Residual is n – 1. False (n – p)
10. The general regression test is used when
there is another variable will be added to the
model given that the previous variables are
already linear in terms of regression model.
True
PROBLEM SOLVING
1-4.) Suppose they want to predict the price of
a new house that has 2,000 square feet, 3
bedrooms, and 2 bathrooms. Using the
regression equation and the estimated
coefficients, calculate the predicted price.
Given that the estimated coefficients are β0 = Residual Error (DF) = n - p = 14 - 2 = 12
100,000, β1 = 150, β2 = 10,000, and β3 =
20,000. 𝑆𝑆𝑇 − 𝑆𝑆𝑅 23091−22784
𝑆𝑆𝐸 = 𝑛−𝑝
= 14−2
= 25. 58

Ans. Price = β0 + β1(2,000) + β2(3) + β3(2) +

2 𝑆𝑆𝐸 25.58
ε Price = 100,000 + 150(2,000) + 𝑀𝑆𝐸 = σ = = = 2. 13
𝑛−𝑝 14−2
10,000(3) + 20,000(2) = $420,000
𝑀𝑆𝑅 11392
5-8).Suppose that they want to predict the final 𝐹0 = 𝑀𝑆𝐸
= 2.13
= 5348. 36 , p-value = 0
exam score of a new student who studied for 5
hours and completed 4 assignments. Suppose (b) What conclusions can you draw about the
the estimated coefficients are β0 = 70, β1 = 5, significance of regression?
and β2 = 10. Using the regression equation
and the estimated coefficients, calculate the
● Since 𝐹0 = 5348. 36 , p-value = 0
predicted final exam score:
Therefore, 𝐻0 is rejected
Ans.

Final exam score = β0 + β1(5) + β2(4) + ε (c) What conclusions can you draw about the
contributions of the individual regressors to the
Final exam score = 70 + 5(5) + 10(4) = 120 model?

9-10). Find f0 given MSR = 2995.3856 and MSE ● The t-test for each regressor is
= 5.2352 significant.

Ans.
𝑀𝑆𝑅 2995.3856
𝑓0 = 𝑀𝑆𝐸
= 5.2352
= 572. 17

11-20)

Solution for 11-20.

(a) Fill in the missing quantities. You may use

bounds for the P-values.

^
β 253.810
𝑡𝑜 = ^ = 4.781
= 53. 087 , p-value = 0
𝑠𝑒β

^
β −3.5753
𝑡2 = ^ = 0.1526
=− 23. 43 , p-value = 0
𝑠𝑒β