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12. (Ch13.5) True or False? The effect of a binary predictor in a multiple regression with three predictors (two of them are19. (Ch13.7) True or False? In a multiple regression, multicollinearity can result in wider confidence intervals for the coef

12. (Ch13.5) True or False? The effect of a binary predictor in a multiple regression with three predictors (two of them are continuous, one is binary) is to shift the regression fitting plane up or down 13. (Ch13.5) True or False? Unlike other predictors, the student's t for testing the significance of a binary predictor is either 0 or l1 14. (Ch13.5) In a multiple regression model of student grades, we would code the nine categories of business courses taken (ACC, FIN, ECN, MGT, MKT, MIS, ORG, POM, QMM) into binaries and then include a. b. 3 relevant binary predictors in the regression. d. 8 15. (Ch13.6) True or False? Adding a square term of a continuous predictor to a multiple regression must lower the mean square error of the regression. 16. (Ch 13.6) To estimate the following model: Revenue =尻AssetsAEmployeesAz, we take common logarithm (logs in base 10) and use OLS with a sample of 60 banks. The regression results suggest: log (Revenue)- -0.42+0.79log(Assets)+0.45log(Employees), by which the corresponding coefficient estimate of Po must be a. 0.398 b. 0.124 c. 0.566 d. 0.971 17. (Ch 13.6) To estimate the following model: Revenue-β0AssetsA EmployeesA , we take common logarithm (logs in base 10) and use OLS with a sample of 60 banks. The regression results suggest: log (Revenue)- -0.42+0.79log(Assets)+0.45log(Employees), by which the corresponding coefficient estimate of A must be a. 0.45 b. 0.79 d. 3.84 18. (Ch13.6) True or False? The regression fitting plane Y -2 5X1 -0.3X 3X2 + 0.7X,X2 ot include an interactio
19. (Ch13.7) True or False? In a multiple regression, multicollinearity can result in wider confidence intervals for the coefficient of predictors. 20. (Ch13.7) True or False? A large variance inflation factor (10) indicates the predictor is weakly correlated with the other predictors.
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12. True 13. False 14. Option c. 9 15. True 16. Bo 10040.398 Option a Note : However the correct answer is = of 10-042 17. op

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