1. How would you explain the relative importance of the independent variables used in a regression equation?

2. Why is it important to examine the assumption of linearity when using regression?

3. How can nonlinearity be corrected or accounted for in the regression equation?

4. Could you find a regression equation that would be acceptable as statistically significant and yet offer no acceptable interpretational value to management?

5. What is the difference in interpretation between regression coefficients associated with interval-scale independent variables and dummy-coded (0, 1) independent variables?

6. What are the differences between interactive and correlated independent variables? Do any of these differences affect your interpretation of the regression equation?

7. Are influential cases always omitted? Give examples of occasions when they should or should not be omitted.