Question

If using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then

		we will be wrong 95% of the time if we reject the null hypothesis.
		we accept the null hypothesis at a 95% confidence level.
		we will be wrong less than 5% of the time if we accept the null hypothesis.
		we reject the null hypothesis at a 95% confidence level.

Ordinary Least Squares Regression analysis attempts to

		change a multivariate problem into a single dimension.
		maximize the residual.
		maximize the distance of each point from a regression line.
		select a line that fits the data well.

An R² close to 1

		indicates that almost all of the variation in the dependent variable is explained by the regression.
		does not happen with real data.
		means that the regression line does not fit the data very well.
		does not explain variation as well as an R2 that is above 2.

A regression analysis with ________ explanatory variables is called a ________.

		two or more; multivariate regression
		two or less; limited regression
		one; dependent regression
		exactly two; binomial least squares regression

In regression analysis, the explanatory variables

		are the factors that are thought to affect the dependent variable.
		are used to explain the random error term.
		are always price and income.
		are the variables whose variations are to be explained.

Answer 1

1. If using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then we reject the null hypothesis at a 95% confidence level. Hence,option(D) is correct.

2. Ordinary least squares regression analysis attempts to selects a line that fits the data well.Hence,option(D) is correct.

3. An R2 close to 1 indicates that almost all of the variation in the dependent variable is explained by the regression. Hence, option(A) is correct.

4. A regression analysis with two or more explanatory variables is called a multivariate regression. Hence,option(A) is correct.

5. In regression analysis,the explanatory variables are the factors that are thought to affect the dependent variable. Hence,option(A) is correct.