BUAL 2650 GUPTA EXAM 2 Questions and Answers | 2026 Step-by-Step Review | A+ Verified

BUAL 2650 GUPTA EXAM 2 Questions
and Answers | 2026 Step-by-Step
Review | A+ Verified
• Regression analysis. CORRECT ANSWER: A statistical technique that uses observed
data to relate the dependent variable to one or more independent variables.

• Objective of regression. CORRECT ANSWER: Build a regression model that can
describe, predict, and control the dependent variable based on the independent
variable.

• Y Intercept (β₀). CORRECT ANSWER: the mean of y when x = 0.

• Slope (β₁). CORRECT ANSWER: The change in the mean of y per unit change in x

• Error term (ε). CORRECT ANSWER: Describes the effect on y of all factors other than
x.

• Coefficient of determination (r²). CORRECT ANSWER: The proportion of total variation
in the dependent variable explained by the regression model.

• Mean of zero assumption. CORRECT ANSWER: At any value of x, the population of
error terms has a mean equal to zero.

• Constant variance assumption. CORRECT ANSWER: At any value of x, the variance
of error terms does not depend on x.

• Normality assumption. CORRECT ANSWER: At any value of x, the error terms follow
a normal distribution.

• Independence assumption. CORRECT ANSWER: Each error term is statistically
independent of the others.

• Significant relationship requirement. CORRECT ANSWER: A regression model is not
useful unless there is a significant relationship between x and y.

• Null hypothesis (regression). CORRECT ANSWER: H₀: β₁ = 0 (no relationship
between x and y).

• Alternative hypothesis (regression). CORRECT ANSWER: Hₐ: β₁ ≠ 0 (significant
relationship between x and y).

• Coefficient of determination (r²) range. CORRECT ANSWER: Between 0 and 1.