14. If the correlation between the twoindependent variables of a regression anal
ID: 2950305 • Letter: 1
Question
14. If the correlation between the twoindependent variables of a regression analysis is 0.11 and eachindependent variable is highly correlated to the dependentvariable, what does this indicate?
Only one of the independent variables should be usedin the regression equation.
The independent variables are strongly related.
Two separate regression equations are required.
Both independent variables should be used to predictthe dependent variable.
15. What does the correlation matrix for amultiple regression analysis contain?
Multiple correlation coefficients
Simple correlationcoefficients
Multiple coefficients of determination
Multiple standard errors of estimate
16. What can we conclude if the global testof regression does not reject the null hypothesis?
A strongrelationship exists among the variables
No relationship exists between the dependent variableand any of the independent variables
The independent variables are good predictors
Good forecasts are possible
17. What can we conclude if the global testof regression rejects the null hypothesis?
Strong correlations exist among the variables
No relationship exists between the dependent variableand any of the independent variables
At least one of the netregression coefficients is not equal to zero.
Good predictions are notpossible
18. For a unit change in the firstindependent variable with other things being held constant, whatchange can be expected in the dependent variable in the multipleregression equation? Y^ = 5.2 + 6.3X1 – 7.1X2
-7.1
+ 6.3
+ 5.2
+ 4.4
Explanation / Answer
14) Both independent variables should be used to predict thedependent variable. 15) Simple correlationcoefficients 16) No relationship exists between the dependent variable and anyof the independent variables 17) At least one of the net regressioncoefficients is not equal to zero. 18)+ 6.3
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