Which of the following statement is a violation of the classical assumtions. There is high correlation...
Which of the following statement is a violation of the classical assumtions.
There is high correlation between dependent and the independent variables.
The variance of the error term is constant.
The regression error terms have low correlation with each other.
None of the other statements is a violation of the classical assumption.
Homework Answers
Correct option is:
The regression error terms have low correlation with each other. (since we assume 0 correlation between them)
Add Answer to:
Which of the following statement is a violation of the classical
assumtions.
There is high correlation...
1. Which of the following is correct? A. In correlation analysis there are two variables and...
1. Which of the following is correct? A. In correlation analysis there are two variables and both are dependent B. I n correlation analysis there are two variables and both are independent C. I n regression analysis there are two variables and both are dependent D: In regression analysis there are two variables and both are independent 2. measures the strength of linear association between two variables. A. Regressor B. Regressand C. Correlation coefficient D. None 3. the independent variables....
Serial correlation, its implications on the OLS model. What is classical Assumption 4 Error term has...
Serial correlation, its implications on the OLS model. What is classical Assumption 4 Error term has constant variance Error term is normally distributed All explanatory variables are un correlated with error term Different observations of error term are uncorrelated each other Relationship between serial correlation and classical assumption 4. Serial violates classical assumption 4 always hold Serial violates support Serial violates is not related Serial violates is used to help when 4 violated Assuming we are using an appropriate test...
2. According to Cohen's (1988) guidelines, an r of -0.56 would be considered a correlation 3....
2. According to Cohen's (1988) guidelines, an r of -0.56 would be considered a correlation 3. If two variables are correlated people who have low scores on one variable will tend to have low scores on the other variable. 4. Calculating a correlation coefficient is only appropriate when there is a relation between two variables. 5. A correlation value of would indicate that there was no association between the two variables. 6. regression enables one to predict an individual's score...
Which of the following would be a violation of our assumption of no perfect multicollinearity? Group...
Which of the following would be a violation of our assumption of no perfect multicollinearity? Group of answer choices Including age and age2 as independent variables in a regression estimating the effects of age on wages. Including years of education and years of experience as a independent variables in a regression estimating the effects of education on wages. Including both weight in pounds and weight in kilograms as indepdent variables in a regression of weight on heart disease morbidity.
Which of the following statements regarding regression and correlation are true? (There may be more than...
Which of the following statements regarding regression and correlation are true? (There may be more than one correct answer.) a. If the linear correlation between two variables is 0, then there is no relationship between the two variables. b. When the slope of a linear regression equation is near 0, then the linear correlation between the two variables must also be near 0. c. The average error between the actual values and the predicted values of a least squares line...
3. Model assumptions Aa Aa E In a multiple regression model with p independent variables, that...
3. Model assumptions Aa Aa E In a multiple regression model with p independent variables, that is, y-Po + β*1 + assumptions + ßpXp + t, you have the following Assumption 1: The error term ε is a random variable with a mean of zero, that is, E(E)-0 for all values of the independent variables x. Assumption 2: The variance of , denoted by ơ2, is the same for all values of the independent variables xi, X2, , Xp Assumption...
I have to submit a term paper which involves conducting a regression and correlation analysis on ...
I have to submit a term paper which involves conducting a regression and correlation analysis on any topic of my choosing. The paper must be based on yearly data for any economic or business variable, for a period of at least 20 years. The following also must be included in the paper: • The term paper should distinguish between dependent and independent variables; determine the regression equation by the least squares method; plot the regression line on a scatter diagram;...
Select the answer that correctly identifies how many of the following statements are true for a...
Select the answer that correctly identifies how many of
the following statements are true for a simple linear regression
model. I) It has one independent and one dependent variable. II) It
describes a straight line relationship between the two variables.
III) It has no error term. IV) The slope parameter and the
correlation coefficient will have the same sign.
A
Only one of the statements is true.
B
Exactly two of the statements are true.
C
Exactly three of the...
13 the following tabe show the correlation coefficient between housing sold the dependent variable in a...
13 the following tabe show the correlation coefficient between housing sold the dependent variable in a regression and the three independent variables: Permit price and employment SOLD PERMIT PRICE FMP SOLD 0779 0.274 -0.295 PERMIT 07291 -047005430 PRICE 0274 0.470 1 0 .906 EMP 0295 -0.543 0.906 1 Choose one of the following answers Multiple Choice The high c on b ons and what is muti n this regression The high correlation between price and employment shows that there is...
1. Which of the following is correct? A. In correlation analysis there are two variables and both are dependent B. I n correlation analysis there are two variables and both are independent C. I n regression analysis there are two variables and both are dependent D: In regression analysis there are two variables and both are independent 2. measures the strength of linear association between two variables. A. Regressor B. Regressand C. Correlation coefficient D. None 3. the independent variables....
2. According to Cohen's (1988) guidelines, an r of -0.56 would be considered a correlation 3. If two variables are correlated people who have low scores on one variable will tend to have low scores on the other variable. 4. Calculating a correlation coefficient is only appropriate when there is a relation between two variables. 5. A correlation value of would indicate that there was no association between the two variables. 6. regression enables one to predict an individual's score...
3. Model assumptions Aa Aa E In a multiple regression model with p independent variables, that is, y-Po + β*1 + assumptions + ßpXp + t, you have the following Assumption 1: The error term ε is a random variable with a mean of zero, that is, E(E)-0 for all values of the independent variables x. Assumption 2: The variance of , denoted by ơ2, is the same for all values of the independent variables xi, X2, , Xp Assumption...
Select the answer that correctly identifies how many of
the following statements are true for a simple linear regression
model. I) It has one independent and one dependent variable. II) It
describes a straight line relationship between the two variables.
III) It has no error term. IV) The slope parameter and the
correlation coefficient will have the same sign.
A
Only one of the statements is true.
B
Exactly two of the statements are true.
C
Exactly three of the...
13 the following tabe show the correlation coefficient between housing sold the dependent variable in a regression and the three independent variables: Permit price and employment SOLD PERMIT PRICE FMP SOLD 0779 0.274 -0.295 PERMIT 07291 -047005430 PRICE 0274 0.470 1 0 .906 EMP 0295 -0.543 0.906 1 Choose one of the following answers Multiple Choice The high c on b ons and what is muti n this regression The high correlation between price and employment shows that there is...
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