1 in a simple linear regression model the direction of corre

1. in a simple linear regression model, the direction of correlation between the dependent and independent variables affects:

a. the sign attached to the coefficient of correlation

b. the sign of the intercept of the estimated regression line

c. the sign of the slope in the estimated regression line

d. both a and c

e. the serially correlated random errors

2. in a (simple or multiple) regression model, one of the basic assumptions is that:

a. random errors are uniformly distributed

b. the random errors associated with any pair of Y values are independent

c. all variables in the linear model are from normally distributed populations

d. the greater the number of independt variables, the better the relationship will be.

e. the unkown coefficients of independent variables are random

3. the criterion for choosing a particular independt variable in a simple regression model is to

a. minimize the sum of the deviation of the observed Y values from their respective predicted values

b. minimize the sum of the absolute deviations of the observed Y values from their respective predicted values

c. minimize the sum of squares of deviateions of the observed values from their respective predicted values

d. minimize the sum of the coefficients in the linear model

e. none of the above

Solution

1)
Answer : a. the sign attached to the coefficient of correlation

2)
Answer : c. all variables in the linear model are from normally distributed populations

3)
Answer : c. minimize the sum of squares of deviations of the observed values from their respective predicted values