Question

QUESTION 4

1. Determine if each of the following statements is True or False with full justification explaining your reasoning.

1. In multiple regression, a large R square indicates all independent variables will have a significant effect on the dependent variable if the significance level is set to 5%.

                   (1 mark)

2. In multiple regression, if an you have an independent variable with a large p-value (close to 1), this independent variable cannot be used to predict the dependent variable.

    (1 mark)

3. In simple regression, a Multiple R close to 1 indicates a strong positive linear relationship between the IV and DV.

     (1 mark)

4. When referring to a sample, it is known that the sample statistics can never be larger than the population parameter.

     (1 mark)

Answer 1

i. False.

In multiple regression large R square indicates that, the model fits the data well. A large value of R square indicates that, large amount of variation in the response variable is explained by the predictor variables.

ii. False. In multiple regression model, if we have an independent variable with large p value(close to 1) which means it in not significant in the model. We may ommit this, but this variable may be jointly significant with other variables.

iii.True.

In simple regression model, multiple R close to 1 indicates a strong positive linear relationship between independent variable (IV) and dependent variable (DV).

iv. False.

When referring to the sample, sample statistics may be larger than, smaller than or equal to the population parameter. Based on the statistics inference about the population parameter are drawn.