MGT 6203 UPDATED ACTUAL Questions and CORRECT Answers

MGT 6203 UPDATED ACTUAL
Questions and CORRECT Answers
Could a variable, say price, be either a dependent or an independent variable? - CORRECT
ANSWER - TRUE


A variable that takes binary values (pass/fail or true/false) cannot be a dependent

variable. - CORRECT ANSWER - FALSE. We do use 0/1 dependent variables in logistic
regression models;


The mean of a variable that has a right-skewed distribution is smaller than

the median. - CORRECT ANSWER - False


The correlation coefficient can capture the strength of both linear and non- linear relationships. -
CORRECT ANSWER - FALSE



The total deviation at observation (xi , yi ) is 𝒚𝒊 − 𝒚ഥ. - CORRECT ANSWER - True


In OLS, the estimates of slope and intercept do not depend on the sample

being used. - CORRECT ANSWER - False


R2(square) = 0, implies that X values account for all of the variation in the Y values -
CORRECT ANSWER - FALSE. R2(square)= 0 implies that X values account for none of
the variation in the Y values


R2(square)can take any value from - infinity to + infinity - CORRECT ANSWER -
FALSE. It can take on values between 0 and 1


In general, adding more variables decreases the overall R-Square value of the multiple regression
- CORRECT ANSWER - False