,
, MGT 6203 MIDTERM PART 1 EXAM |
QUESTIONS AND ANSWERS | 2026
UPDATE | WITH COMPLETE SOLUTIONS |
100% CORRECT.
SECTION 1: LINEAR REGRESSION CONCEPTS
(Questions 1-15)
Question 1
In a simple linear regression model Y = β₀ + β₁X + ε, what does β₁
represent?
A) The value of Y when X is zero
B) The change in Y for a one-unit change in X
C) The error term
D) The correlation coefficient
Correct Answer: B) The change in Y for a one-unit change in X
Rationale: β₁ is the slope coefficient, representing the expected change in
the dependent variable Y for each one-unit increase in the independent
variable X, holding all else constant. β₀ is the intercept (Y when X=0) .
Question 2
Consider a linear regression model with 2 independent variables. If
we add an interaction term between the independent variables to
the model, how will the model be affected?
, MGT 6203 MIDTERM PART 1 EXAM |
QUESTIONS AND ANSWERS | 2026
UPDATE | WITH COMPLETE SOLUTIONS |
100% CORRECT.
SECTION 1: LINEAR REGRESSION CONCEPTS
(Questions 1-15)
Question 1
In a simple linear regression model Y = β₀ + β₁X + ε, what does β₁
represent?
A) The value of Y when X is zero
B) The change in Y for a one-unit change in X
C) The error term
D) The correlation coefficient
Correct Answer: B) The change in Y for a one-unit change in X
Rationale: β₁ is the slope coefficient, representing the expected change in
the dependent variable Y for each one-unit increase in the independent
variable X, holding all else constant. β₀ is the intercept (Y when X=0) .
Question 2
Consider a linear regression model with 2 independent variables. If
we add an interaction term between the independent variables to
the model, how will the model be affected?
