# Economics and Management

1. Which of the following is a test of the statistical signficiance of the entire regression equation?

A. t-test

B. R2

C. F-test

D. Durbin-Watson

2. When the R2 of a regression equation is very high, it indicates that

A. all the coefficients are statistically signficant.

B. the intercept term has no economic meaning

C. a high proportion of the variation in the independent variable can be

accounted for by the variation in the independent variables

D. there is a good chance of serial correlation and so the equation must be discarded

3. Which value for the Durbin-Watson test indicates the least likelihood of serial correlation?

A 1

B. 2

C. -3

D. -1

4. The use of a dummy variable in regression analysis

A. indicates that a researcher does not really know what to include in the equation

B. indicates that a variable is expected to either have or not have an impact on a dependent variable

C. indicates that insufficient data is available for the analysis

D. indicates the use of hypthetical data

5. A manager will have the least confidence in an explanatory variable that:

A. does not pass the F-test

B. is expressed as a dummy variable

C. does not pass the t-test

D. consititutes only a small part of R2

https://brainmass.com/economics/regression/economics-and-management-78638

#### Solution Preview

1. Which of the following is a test of the statistical signficiance of the entire regression equation?

A. t-test

2. When the R2 of a regression equation is very high, it ...