QBA 3305 EXAM|VERIFIED |GUARANTEED ACCURATE ANSWERS

QBA 3305 EXAM QBA 3305 EXAM|VERIFIED |GUARANTEED ACCURATE ANSWERS Testing the overall model (multiple regression) - Accurate AnswerPerform the F-Test using the ANOVA chart. Ho: B1 = B2 = B3 = ... = 0 Ha: At least one B is not 0 Test Statistic: F Ratio under ANOVA P-Value: Prob F under ANOVA Conclusion: If p-value .05, reject Ho Testing individual coefficients to find good predictors (multiple regression) - Accurate AnswerUse t statistic and p-value under parameter estimates. If p-value for the specific variables is less than .05, this indicates that these are good predictors. What happens when you add more predictors to the model? - Accurate AnswerR squared will increase regardless whether the new predictors are good predictors. Adding predictors to a model that are not good predictors is the way that R squared can be artificially inflated. The sample size is not sufficiently large enough to handle the k predictors. 10 * k = n is what we want to have. What happens when you re-run a model after taking out the poor predictor variables? - Accurate AnswerThe model is REDUCED when you do this. Why is it important to check the correlation matrix? - Accurate AnswerIt is important to check to ensure that there are not any x variables correlated with each other. (Multicollinearity) How do you go about choosing between two different models with good predictors for y? - Accurate AnswerChoose the