Problem: If a regression coefficient passes the t-test, it means that

a. the regression equation is valid.

b. the regression coefficient is significantly different from zero.

c. the regression coefficient can be used for forecasting.

d. the regression coefficient should be included in the regression equation.

Which of the following is a test of the statistical significance of a particular regression coefficient?

a. t-test

b. R ²

c. F-test

d. Durbin-Watson test

Which of the following is a measure of the explanatory power of the regression model?

a. t-test

b. R ²

c. F-test

d. Durbin-Watson test

For the regression equation Q = 100 - 10X ₁ + 25X ₂ , which of the following statements is true?

a. X ₂ is the more important variable because it is positive.

b. When X ₁ decreases by one unit, Q decreases by 10 units.

c. When X ₂ increases by 10 units, Q decreases by 1 unit.

d. When X ₁ increases by one unit, Q decreases by 10 units.

The t-statistic is computed by

a. dividing the regression coefficient by the standard error of the estimate.

b. dividing the regression coefficient by the standard error of the coefficient.

c. dividing the standard error of the coefficient by the regression coefficient.

d. dividing the R ² by the F-statistic.

The forecasting method that involves using an average of past observations to predict the future (if the forecaster feels that the future is a reflection of some average of past results) is the

a. moving average method.

b. econometric forecasting method.

c. exponential smoothing method.

d. both a. and b.

e. both a. and c.

P rovide a discussion on the following:

You have been hired as an economic analyst; your job is to use the Regression Model to estimate potential sales of your employer's product. Knowing that the "dependent variable" Q is the potential sales or quantity demanded, discuss the independent variables you will include in your analysis including their units of measurement.

Based on the number of independent variables chosen, specify a regression function appropriate for your analysis and state whether you would be using cross-sectional or time series data. Differentiate between the two.

Price: $9.96

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