BUSA 4000 Questions with CORRECT Answers

BUSA 4000 (3) Questions with CORRECT Answers


Question:
Influential Observations
Answer:
An observation that has a strong influence on the regression model

Question:
Partial F-Test Statistic Calculation
Answer:
[(SSEreduced-SSEfull)/(kl)]/MSEfull

Question:
Multicollinearity
Answer:
Any VIF larger than 10 means there is collinearity present

Question:
Large F value, small t values Prediction vs. Confidence intervals
Answer:
Prediction interval is ALWAYS wider than confidence interval

Question:
Constructing a confidence interval
Answer:
(b1-t*x sb1, b1+t*x sb1)

Question:
When two variables are interaction variables, say ADV and GEN, you fit the model
with both these variables and a third variable ADVGEN which is ADVxGEN.
Answer:
Interaction Variables