Using anova instead of regression to solve problem

Assignment Help Basic Statistics

Reference no: EM1323220

Q1) Market model relating rate of return of stock XYZ (denoted RXYZ) to rate of return of a broader index of stock market (denoted RM) is reported as: RXYZ = 4.46 + 0.304RM

Coefficient	Standard Error
4.460	3.0400
0.304	0.3243
Analysis of Variance
Source		DF	Sum of Squares
Regression		?	141.9
Residual		?	3718.9
Total		24	?

Which of given is an suitable null hypothesis?

a) H0: beta1 = 0

b) H0: beta1 = beta0

c) H0: beta1 ≠ 0

d) H0: beta1 ≠ beta0

Q2) What can be done to remedy multicollinearity?

a) Use ANOVA instead of Regression.

b) Drop variables which are correlated from the model.

c) Add dummy variables to prevent problem.

d) None of the above.

Q3) You have been given report which presents 2 regression models with different numbers of independent variables. You don't have the data so you can't recalculate regression
models. However, you have been asked to find out which model is better. How can you
reasonably compare them?

a) Use R-square

b) Use Adjusted R-square

c) Use coefficient of determination

d) You can't compare models with different numbers of independent variables.

Reference no: EM1323220

Questions Cloud

Ecessionary expenditure gap in a mixed open economy : A recessionary expenditure gap in a mixed open economy can be measured as the extent to which cumulative expenditures

Assume that the geometry is that of paralle lplate capacitor : An electron with initial velocity v0 = 1.20 × 10^5 m/s enters a region 1cm long where it is electrically accelerated. It emerges with velocity v = 5.87 × 10^5 m/s. What is its acceleration, assumed constant? (Such a process occurs in conventional ..

Decisions differ between capitalist also socialist systems : How does the concept of prospect cost apply to production possibilities curve analysis. How do these decisions differ between capitalist also socialist systems

What is the value of q if the initial acceleration : A bar AB of negligible mass and length 2 m balanced at its midpoint a 4 kg and 5 kg masses are suspended from both ends. A 4 kg mass is 0.4m away from the midpoint. At what point the mass of 5 kg is suspended to a bar keep the balance.

Using anova instead of regression to solve problem : What can be done to remedy multicollinearity? Use ANOVA instead of Regression.

What is the maximum amount by which funds provide : Illustrate what is the maximum amount by which funds provide can be increased as a result of bank A's new loan

Find out the speed of sound in air : A "door closer" is attached to the door and the top of the door frame.When the door is open and at rest, the door closer exerts a torque of 4.8 {rm N} cdot {rm m}. What is the least force that you need to apply to the door to hold it open.

Determine high performance when outsourcing a project : Discuss three issues that can determine high performance when outsourcing a project. Discuss ways that these issues can be reduced or eliminated ahead of time or during the project duration.

New york times editorialist recently advocated : A New York Times editorialist recently advocated a cut in the payroll tax.

User Account

All Pages