Reading 11: Correlation and Regression - LOS j: Q1-2 following, include, number, white

mayanfang1

Q1. Regression analysis has a number of assumptions. Violations of these assumptions include which of the following?

A)     Independent variables that are not normally distributed.

B)     Residuals that are not normally distributed.

C)     A zero mean of the residuals.

Q2. Limitations of regression analysis include all of the following EXCEPT:

A)     parameter instability.

B)     regression results do not indicate anything about economic significance.

C)     outliers may affect the estimated regression line.

mayanfang1

答案和详解如下：

Q1. Regression analysis has a number of assumptions. Violations of these assumptions include which of the following?

A)     Independent variables that are not normally distributed.

B)     Residuals that are not normally distributed.

C)     A zero mean of the residuals.

Correct answer is B)

The assumptions include a normally distributed residual with a constant variance and a mean of zero.

Q2. Limitations of regression analysis include all of the following EXCEPT:

A)     parameter instability.

B)     regression results do not indicate anything about economic significance.

C)     outliers may affect the estimated regression line.

Correct answer is B)

The estimated coefficients tell us something about economic significance – they tell us the expected or average change in the dependent variable for a given change in the independent variable.

 

rettacui

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hitman1986

1

rex629

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cyyap1011

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lenny_chen

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101

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