REAL EXAM CORRECT SOLUTIONS
−2LL - (answer)the log-likelihood multiplied by minus 2. This version of the
likelihood is used in logistic regression.
economics, entrepreneurship, and international business.1.2. Structure of Business ExamsBusiness exams are often a mix of theoretical knowledge and practical application. Depending on the subject area, these exams
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α-level - (answer)the probability of making a Type I error (usually this value is
0.05).
Adjusted mean - (answer)in the context of analysis of covariance this is the value
of the group mean adjusted for the effect of the covariate.
Adjusted predicted value - (answer)a measure of the influence of a particular case
of data. It is the predicted value of a case from a model estimated without that
case included in the data. The value is calculated by re-estimating the model
without the case in question, then using this new model to predict the value of
the excluded case. If a case does not exert a large influence over the model then
its predicted value should be similar regardless of whether the model was
estimated including or excluding that case. The difference between the predicted
value of a case from the model when that case was included and the predicted
value from the model when it was excluded is the DFFit.
Adjusted R2 - (answer)a measure of the loss of predictive power or shrinkage in
regression. The adjusted R2 tells us how much variance in the outcome would be
accounted for if the model had been derived from the population from which the
sample was taken.
, AIC (Akaike's information criterion) - (answer)a goodness-of-fit measure that is
corrected for model complexity. That just means that it takes account of how
many parameters have been estimated. It is not intrinsically interpretable, but
can be compared in different models to see how changing the model affects the
fit. A small value represents a better fit to the data.
economics, entrepreneurship, and international business.1.2. Structure of Business ExamsBusiness exams are often a mix of theoretical knowledge and practical application. Depending on the subject area, these exams
can vary significantly in format. Common types of business exams and Wri
AICC (Hurvich and Tsai's criterion) - (answer)a goodness-of-fit measure that is
similar to AIC but is designed for small samples. It is not intrinsically interpretable,
but can be compared in different models to see how changing the model affects
the fit. A small value represents a better fit to the data.
Alpha factoring - (answer)a method of factor analysis.
Alternative hypothesis - (answer)the prediction that there will be an effect (i.e.,
that your experimental manipulation will have some effect or that certain
variables will relate to each other).
Analysis of covariance - (answer)a statistical procedure that uses the F-statistic to
test the overall fit of a linear model, adjusting for the effect that one or more
covariates have on the outcome variable. In experimental research this linear
model tends to be defined in terms of group means and the resulting ANOVA is
therefore an overall test of whether group means differ after the variance in the
outcome variable explained by any covariates has been removed.
Analysis of variance - (answer)a statistical procedure that uses the F¬¬-statistic to
test the overall fit of a linear model. In experimental research this linear model
tends to be defined in terms of group means, and the resulting ANOVA is
therefore an overall test of whether group means differ.
, ANCOVA - (answer)acronym for analysis of covariance.
economics, entrepreneurship, and international business.1.2. Structure of Business ExamsBusiness exams are often a mix of theoretical knowledge and practical application. Depending on the subject area, these exams
can vary significantly in format. Common types of business exams and Wri
Anderson-Rubin method - (answer)a way of calculating factor scores which
produces scores that are uncorrelated and standardized with a mean of 0 and a
standard deviation of 1.
ANOVA - (answer)acronym for analysis of variance.
AR(1) - (answer)this stands for first-order autoregressive structure. It is a
covariance structure used in multilevel linear models in which the relationship
between scores changes in a systematic way. It is assumed that the correlation
between scores gets smaller over time and that variances are assumed to be
homogeneous. This structure is often used for repeated-measures data (especially
when measurements are taken over time such as in growth models).
Autocorrelation - (answer)when the residuals of two observations in a regression
model are correlated.
bi - (answer)unstandardized regression coefficient. Indicates the strength of
relationship between a given predictor, i, of many and an outcome in the units of
measurement of the predictor. It is the change in the outcome associated with a
unit change in the predictor.
βi - (answer)standardized regression coefficient. Indicates the strength of
relationship between a given predictor, i, of many and an outcome in a
, standardized form. It is the change in the outcome (in standard deviations)
associated with a one standard deviation change in the predictor.
β-level - (answer)the probability of making a Type II error (Cohen, 1992, suggests
a maximum value of 0.2).
Bar chart - (answer)a graph in which a summary statistic (usually the mean) is
plotted on the y-axis against a categorical variable on the x-axis (this categorical
variable could represent, for example, groups of people, different times or
different experimental conditions). The value of the mean for each category is
shown by a bar. Different-coloured bars may be used to represent levels of a
second categorical variable.
economics, entrepreneurship, and international business.1.2. Structure of Business ExamsBusiness exams are often a mix of theoretical knowledge and practical application. Depending on the subject area, these exams
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Bartlett's test of sphericity - (answer)unsurprisingly, this is a test of the
assumption of sphericity. This test examines whether a variance-covariance
matrix is proportional to an identity matrix Therefore, it effectively tests whether
the diagonal elements of the variance-covariance matrix are equal (i.e., group
variances are the same), and whether the off-diagonal elements are
approximately zero (i.e., the dependent variables are not correlated). Jeremy
Miles, who does a lot of multivariate stuff, claims he's never ever seen a matrix
that reached non-significance using this test and, come to think of it, I've never
seen one either (although I do less multivariate stuff), so you've got to wonder
about its practical utility.
Bayes factor - (answer)the ratio of the probability of the observed data given the
alternative hypothesis to the probability of the observed data given the null
hypothesis. Put another way, it is the likelihood of the alternative hypothesis
relative to the null. A Bayes factor of 3, for example, means that the observed
data are 3 times more likely under the alternative hypothesis than under the null