ALM Final Exam Study Guide 2026 Questions
with Correct Answers
Correlation - CORRECT ANSWER -
is the extent to which 2 variables vary together. It measures the pattern of responses across vari
ables. ItVis the basis of regression analysis.
Nature of relationship is determined by 2 things: - CORRECT ANSWER -
1. The direction of the relationship
- Positive covariance: positive relationship
- Negative covariance: negative relationship
2. The strength of association
Pearson's correlation coefficient (Pearson's R): Correlation - CORRECT ANSWER -
1. It is a standardized metric of covariance or effect size that tells us how much the change in on
e variable impacts the change in another variable.
Coefficient of Determinism (R2): Correlation - CORRECT ANSWER -
is a measure of effect size that tells us how much variance in one variable is accounted for by th
e variance in another variable. In another words, how much variance in Y is explained by varian
ce in X. It is the proportion of change in one variable shared by the other.
1. Non-parametric correlation test
Spearman's rho: - CORRECT ANSWER -
Ranks variables to determine if there is a relationship, doesn't have to be a linear relationship, S
pearman's rho will equal Pearson's coefficient if linear.
Simple Linear Regression - CORRECT ANSWER -
It is a way of predicting the value of one variable from another. It is a hypothetical model of the
relationship between 2 variables.
, Simple Linear Regression Equation - CORRECT ANSWER -B0 + b1Xi
Bi - CORRECT ANSWER -slope
B0 - CORRECT ANSWER -- value of y when x is 0, the y intercept.
Y - CORRECT ANSWER -hat is the predicated value of y at every value of x.
ANOVA F-score - CORRECT ANSWER -
mean square of model/ Mean square of residuals: when stat significant it means that the model
(numerator) explains more variance than the mean (denominator).
Heteroscedasticity: - CORRECT ANSWER -
the amount of variance is not equally explained for every value of x. the model is not fittingVwell
at every value of x
Standardized residuals: - CORRECT ANSWER -
Measure of how many standard deviations the residual is from the average residual size.
Hierarchial pro - CORRECT ANSWER -
it is the best method based on theory testing, tells you how much stronger the model is with th
e new variables added.
Hierarchial con - CORRECT ANSWER -it relies on the experimenter knowing what he is doing
A. Hierarchical - CORRECT ANSWER -
Experimenter decides the order in which variables are entered into the model-
based on prior research.
with Correct Answers
Correlation - CORRECT ANSWER -
is the extent to which 2 variables vary together. It measures the pattern of responses across vari
ables. ItVis the basis of regression analysis.
Nature of relationship is determined by 2 things: - CORRECT ANSWER -
1. The direction of the relationship
- Positive covariance: positive relationship
- Negative covariance: negative relationship
2. The strength of association
Pearson's correlation coefficient (Pearson's R): Correlation - CORRECT ANSWER -
1. It is a standardized metric of covariance or effect size that tells us how much the change in on
e variable impacts the change in another variable.
Coefficient of Determinism (R2): Correlation - CORRECT ANSWER -
is a measure of effect size that tells us how much variance in one variable is accounted for by th
e variance in another variable. In another words, how much variance in Y is explained by varian
ce in X. It is the proportion of change in one variable shared by the other.
1. Non-parametric correlation test
Spearman's rho: - CORRECT ANSWER -
Ranks variables to determine if there is a relationship, doesn't have to be a linear relationship, S
pearman's rho will equal Pearson's coefficient if linear.
Simple Linear Regression - CORRECT ANSWER -
It is a way of predicting the value of one variable from another. It is a hypothetical model of the
relationship between 2 variables.
, Simple Linear Regression Equation - CORRECT ANSWER -B0 + b1Xi
Bi - CORRECT ANSWER -slope
B0 - CORRECT ANSWER -- value of y when x is 0, the y intercept.
Y - CORRECT ANSWER -hat is the predicated value of y at every value of x.
ANOVA F-score - CORRECT ANSWER -
mean square of model/ Mean square of residuals: when stat significant it means that the model
(numerator) explains more variance than the mean (denominator).
Heteroscedasticity: - CORRECT ANSWER -
the amount of variance is not equally explained for every value of x. the model is not fittingVwell
at every value of x
Standardized residuals: - CORRECT ANSWER -
Measure of how many standard deviations the residual is from the average residual size.
Hierarchial pro - CORRECT ANSWER -
it is the best method based on theory testing, tells you how much stronger the model is with th
e new variables added.
Hierarchial con - CORRECT ANSWER -it relies on the experimenter knowing what he is doing
A. Hierarchical - CORRECT ANSWER -
Experimenter decides the order in which variables are entered into the model-
based on prior research.
