4/11/2021 Review Test Submission: chap 5 man econ – SPRING_2021_...

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Review Test Submission: chap 5 man econ

User Maria Pia Velasquez

Course ECO 424-1 Managerial Economics - SPRING 2021
Test chap 5 man econ
Started 4/11/21 10:19 PM
Submitted 4/11/21 10:39 PM
Due Date 4/13/21 11:59 PM
Status Completed
Attempt Score 15 out of 15 points
Time Elapsed 19 minutes out of 1 hour
Results Displayed All Answers, Feedback, Incorrectly Answered Questions

Question 1 1 out of 1 points

Which of the following refers to a relatively high correlation among the independent variables of
a regression equation?
Answers: A. multicollinearity

B. statistically insignificant regression coefficients

C. autocorrelation

D. the identification problem

Question 2 1 out of 1 points

The problem of autocorrelation refers to

Answers: A.
regression equation variables which exhibit a similar pa ern in their values over a
number of time periods.

B. insufficient data to estimate regression coefficient values.

C. regression coefficient values which are not significantly different from zero.
D.
independent variables in a regression equation whose values are closely related to
each other.

Question 3 1 out of 1 points

The t-statistic is computed by

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4/11/2021 Review Test Submission: chap 5 man econ – SPRING_2021_...

Answers: 2
A. dividing the R by the F-statistic.

B. dividing the standard error of the coefficient by the regression coefficient.

C. dividing the regression coefficient by the standard error of the coefficient.

D. dividing the regression coefficient by the standard error of the estimate.

Question 4 1 out of 1 points

Regression analysis can best be described as

Answers: A. a statistical technique for creating functional relationships among variables.

B. a statistical technique for determining the true values of variables.

C.
a statistical technique for estimating the best relationship between one variable and
a set of other selected variables.

D. None of the above

Question 5 1 out of 1 points

If a regression coefficient passes the t-test, it means that

Answers: A. the regression equation is valid.

B. the regression coefficient should be included in the regression equation.

C. the regression coefficient is significantly different from zero.

D. the regression coefficient can be used for forecasting.

Question 6 1 out of 1 points

Answer the following questions on the basis of the following regression equation. (Standard errors in
parentheses, n = 200.)

Q = -6,500 - 100PA + 50PB + .3I + .2A; R2 =.12, (2,500) (50) (30) (.1) (.08)

where Q is the quantity demanded of good A; PA = $10, price of good A; PB = $8, price of good B; I =
$12,000, per capita income; and A = $20,000, monthly advertising expenditures.

Which of the following cannot be determined on the basis of the above regression results?
Answers: A. whether or not good A is "normal"

B. the degree of competition between A and B

C. the degree of price elasticity of good B

D. All of the above can be determined.

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4/11/2021 Review Test Submission: chap 5 man econ – SPRING_2021_...

Question 7 1 out of 1 points

A manager will have the least confidence in an explanatory variable that

Answers: 2
A. constitutes only a small part of R .

B. does not pass the t-test.

C. does not pass the F-test.

D. is expressed as a dummy variable.

Question 8 1 out of 1 points

When a regression coefficient is significant at the .05 level, it means that

Answers: A.
there is 95 percent chance that the regression coefficient is the true population
coefficient.

B. there is a five percent chance or less that the estimated coefficient is zero.

C. there is only a five percent chance that there will be an error in a forecast.
D.
there is a five percent chance or less that the regression coefficient is not the true
population coefficient.

Question 9 1 out of 1 points

Which of the following indicators will always improve when more variables are added to a
regression equation?
Answers: A. the standard errors of the coefficients

B. the t-test

2
C. R

D. the magnitudes of the coefficients

Question 10 1 out of 1 points

Answer the following question(s) based on the following regression equation (Standard errors in
parentheses, n = 150):

QD = 1000 - 50PA + 10PB + .05I, (20) (7) (.04)

where QD = quantity demanded of good A, PA = price of good A, PB = price of a competing good B, and I
= per capita income.

For which of the following variables should a "two tail" t-test be applied?
Answers:
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P
A. B

B. I

P
C. A

D. Should be applied for all.

Question 11 1 out of 1 points

The F-test is used to determine if

Answers: A.
a regression equation significantly accounts for the variation in the value of a
dependent variable.

B. a regression coefficient is significant.

C. multicollinearity exists.

D. an identification problem is present.

Question 12 1 out of 1 points

Which indicator shows how well a regression line fits through the sca er of data points?
Answers: 2
A. R

B. t-test

C. F-test

D. Durbin-Watson test

Question 13 1 out of 1 points

Answer the following questions on the basis of the following regression equation. (Standard errors in
parentheses, n = 200.)

Q = -6,500 - 100PA + 50PB + .3I + .2A; R2 =.12, (2,500) (50) (30) (.1) (.08)

where Q is the quantity demanded of good A; PA = $10, price of good A; PB = $8, price of good B; I =
$12,000, per capita income; and A = $20,000, monthly advertising expenditures.

Which of the variables does not pass the t-test at the .05 level of significance?
Answers: P
A. A

B. A

P
C. B

D. I

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4/11/2021 Review Test Submission: chap 5 man econ – SPRING_2021_...

E. All the variables pass the t-test.

Question 14 1 out of 1 points

Answer the following questions on the basis of the following regression equation. (Standard errors in
parentheses, n = 200.)

Q = -6,500 - 100PA + 50PB + .3I + .2A; R2 =.12, (2,500) (50) (30) (.1) (.08)

where Q is the quantity demanded of good A; PA = $10, price of good A; PB = $8, price of good B; I =
$12,000, per capita income; and A = $20,000, monthly advertising expenditures.

As a researcher, which aspect of the results would be of greatest concern?

Answers: A. the relatively low impact of the competitor's price

B. the negative value of the constant (i.e., -6,500)

C. the poor fit of the regression line

D. the fact that not all of the variables are statistically significant

Question 15 1 out of 1 points

The t-test is a statistical measure which

Answers: A. tests the statistical significance of a regression coefficient.

B. tests the true value of a variable.

C. tests the statistical significance of a regression equation.

D. None of the above

Sunday, April 11, 2021 10:39:27 PM EST

← OK

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