Table 14-7: (below) The department head of the accounting department wanted to s

Question

Table 14-7: (below)

The department head of the accounting department wanted to see if she could predict the GPA of students using the number of course units (credits) and total SAT scores of each. She takes a sample of students and generates the following Microsoft Excel output (Note: 0 = intercept, 1and 2 are partial slope coefficients on Units and SAT Total.):

1. True or False: Referring to Table 14-7, the department head wants to use a t test to test for the significance of the coefficient of X1. At a level of significance of 0.05, the department head would decide that effect of Units, 1 0.

2. True or False: Referring to Table 14-7, from Excel output we can conclude that the intercept of the regression model is significantly different from 0 in the population.

3. True or False: Referring to Table 14-7, in the Excel output provided the reason why regression degrees of freedom equal 2 is because we are comparing two independent groups under the null hypothesis.

4. True or False: Referring to Table 14-7, although in the Excel output provided the Adjusted R square is less than R square, theoretically Adjusted Rsquare can be greater than R square in the population.

5. True or False: Referring to Table 14-7, in the Excel output the value of test statistic corresponding to the intercept is 0.0271.

6. True or False: (14-7) In a multiple regression model, Adjusted R square is a relatively more accurate estimate of proportion of explained variation as compared to R square.

7. In a multiple regression model, the adjusted r2 in percentage terms

A. can sometimes be greater than +1. B. has to fall between 0 and +1. C. cannot be negative. D. can sometimes be negative. SUMMARY OUTPUT Regression Statistics Multiple R 0.916 0.839 R Square Adjusted R Square 0.732 0.24685 Standard Error Observations ANOVA Signif F MS 0.95219 0.47610 7.813 0.0646 Regression 0.06094. 0.18281 Residual 1.13500 Total Coeff P-value Std Error t Stat Intercept 4.593897 1.13374542 4.052 0.0271 Units 0.247270 0.06268485 3,945 0.0290 SAT Total 0.001443 0.00101241 1.425 0.2494

Explanation / Answer

Due to standard definitions we have

1-True

2-True

3-False

4-False

5-False

6-True

7-D

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