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MGMT E – 5070 DATA MINING AND FORECAST MANAGEMENT Professor Vaccaro TERM EXAMINATION , Chapters 4 and 5 ( Partial ) NAME_________________ Solution _ True or False 1. T F In regression, an independent variable is sometimes called a response variable. 2. T F The variable to be predicted is the dependent variable. 3. T F If the significance level for the F-test is high, there is a relationship between the dependent and independent variables. 4. T F There is no relationship between variables unless the data points lie in a straight line. 5. T F For statistical tests of significance about the coefficients, the null hypothesis is that the slope is “ 1 “ . 6. T F In regression, there is random error that can be predicted. 7. T F Error is the difference in the actual values and the predicted values. 8. T F The regression line minimizes the sum of the squared errors. 9. T F Summing the error values in a regression model is misleading because negative errors cancel out positive errors. 10. T F The SSE measures the total variability in the independent variable about the regression line. 11. T F The SSR indicates how much of the total variability in the dependent variable is explained by the regression model. 12. T F The coefficient of determination takes on values between -1 and +1. 13. T F The coefficient of determination gives the proportion of the variability in the dependent variable that is explained by the regression equation. 14. T F Errors are also called residuals. -2- 15. T F The regression model assumes the errors are normally distributed. 16. T F The errors in a regression model are assumed to have an increasing variance as the value of the ‘X’ variable