1) If the relationship between y (a dependent variable) and x (an independent va
ID: 3048059 • Letter: 1
Question
1) If the relationship between y (a dependent variable) and x (an independent variable) is curvilinear as suggested by a graph, the regression equation representing the curvilinear relationship will contain:
a. a first-order and a second-order term
b. some complex terms
c. no higher order terms
d. only a first order term
2)
A variable that takes on the values of 0 or 1 and is used to incorporate the effect of nominal variables in a regression model is called:
a. an interaction
b. a constant variable
c. an indicator variable
d. None of these alternatives is correct.
a. an interaction
b. a constant variable
c. an indicator variable
d. None of these alternatives is correct.
Explanation / Answer
(1) Option a is correct.
This is due to the fact that the regression equation, if quadratic, becomes y = a + bx + cx^2.
(2) Option c is correct.
This is due to the fact that a dummy variable incorporates the effect of nominal variables in a regression model.
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