Class Test 02

Course name: Business Analytics

Course Code: ACT 3202
Duration: 40min

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1. What does the R-squared value in a regression analysis indicate?

a) The percentage of the data points that fall on the regression line
b) The percentage of the variance in the dependent variable that is predictable from the
independent variable(s)
c) The correlation between the dependent and independent variables
d) The error rate of the regression model

2. In the context of regression analysis, what does the Significance F value indicate?

a) The overall significance of the regression model

b) The individual significance of the independent variables
c) The correlation coefficient between the dependent and independent variables
d) The R-squared value of the model

3. If the p-value of an independent variable in a regression model is less than 0.05,

what does it indicate?

a) The variable is not statistically significant

b) The variable is statistically significant
c) The model is overfitted
d) The model is underfitted

4. What is the purpose of the Adjusted R-squared value in multiple regression analysis?

a) To account for the number of predictors in the model

b) To increase the model's prediction accuracy
c) To test the model's assumptions
d) To estimate the error variance

5. In a simple linear regression model, the slope coefficient represents:

a) The change in the dependent variable for a one-unit increase in the independent variable
b) The mean value of the dependent variable when all independent variables are zero
c) The variance of the regression model
d) The correlation between the dependent and independent variables
6. When performing regression analysis in Excel, which of the following outputs
provides information about the distribution of residuals?

a) ANOVA table
b) Coefficients table
c) Residual plot
d) R-squared value

7. What does a p-value greater than 0.05 for a regression coefficient imply in Excel's
regression output?

a) The coefficient is highly significant

b) The coefficient is not significant
c) The model perfectly fits the data
d) The data is not normally distributed

8. In the context of regression analysis, the intercept coefficient represents:

a) The predicted value of the dependent variable when all independent variables are set to
zero
b) The slope of the regression line
c) The correlation between dependent and independent variables
d) The error term of the regression model

The following is the regression output from a dataset. Answer questions 9-15 from this.

Regression Statistics
Multiple R 0.33044747
R Square 0.10919553
Adjusted R Square -0.3362067
Standard Error 3.49979449
Observations 10

ANOVA
df SS MS F Significance F
Regression 3 9.00863133 3.00287711 0.24516162 0.86201423
Residual 6 73.4913687 12.2485614
Total 9 82.5

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -7.4805557 19.95366821 -0.3748963 0.72063171 -56.305423 41.3443115 -56.305423 41.3443115
Hours Studied (X1) -1.5316482 2.746933759 -0.5575847 0.59730017 -8.253153 5.18985658 -8.253153 5.18985658
Average Sleep Hours (X2) -0.1154062 2.497639543 -0.0462061 0.9646455 -6.22691 5.99609763 -6.22691 5.99609763
Final Exam Score (Y) 0.2962728 0.405614775 0.73042901 0.4926511 -0.6962308 1.2887764 -0.6962308 1.2887764
9. What can you infer about the intercept's role in this model, given its coefficient and
p-value?

a) The intercept is not significant and should be removed from the model.
b) The intercept is statistically significant and indicates the expected Final Exam Score when
both Hours Studied and Average Sleep Hours are zero.
c) The intercept has a high level of uncertainty, making it unreliable.
d) The intercept's value is practically insignificant since it's negative.

10. Looking at the coefficients and their corresponding p-values, what conclusion can
you draw about the predictors?

a) Both predictors are significant and have a strong influence on the Final Exam Score.
b) Hours Studied is a significant predictor while Average Sleep Hours is not.
c) Neither predictor is statistically significant at the 0.05 significance level.
d) Average Sleep Hours is the only significant predictor of Final Exam Score.

11. Based on the ANOVA table, how would you describe the overall model fit?

a) The model explains a significant amount of variance in the Final Exam Scores.
b) The model does not fit the data well and is likely not useful for predicting Final Exam
Scores.
c) The model's predictors explain some variance, and it's a good fit for the data.
d) The F-statistic indicates that the model is overfitted.

12. Considering the Significance F value, what does it suggest about the model?

a) The model is highly significant and all predictors should be kept.

b) The model is not significant, suggesting that the predictors' effects are likely due to chance.
c) The Significance F value indicates that there is multicollinearity in the model.
d) A low Significance F implies that the model's accuracy is very high.

13. If you were to remove one predictor based on this output, which one would it be and
why?

a) Remove Hours Studied because its coefficient is negative.

b) Remove Average Sleep Hours due to its higher p-value compared to Hours Studied.
c) Remove Hours Studied because its p-value indicates it is not significant.
d) Neither should be removed; instead, more data should be collected to improve model
accuracy.

14. If we are using a significance level of 0.05, what does the p-value for the Hours
Studied (X1) coefficient tell us about its relationship with the Final Exam Score (Y)?

a) Hours Studied has a significant positive relationship with the Final Exam Score.
b) Hours Studied has a significant negative relationship with the Final Exam Score.
c) There is no significant relationship between Hours Studied and the Final Exam Score.
d) The relationship cannot be determined without further information.
15. Based on the F statistic and the Significance F value in the ANOVA table, how
would you describe the strength of the regression model?

a) The model is strong and all predictors are significant.

b) The model is weak and none of the predictors are significant.
c) The model is moderate and at least one predictor is significant.
d) The strength of the model cannot be determined from the given values.