For simple regression the p-value for the F test will always be smaller than the p-value for the t test for the independent variable (more precisely, the t test for the null hypothesis that the coefficient on the independent variable is 0).

True or False

Which of the following is an assumption we typically make when performing OLS regression? a. The derivative of the MSE with respect to the error term is positive.

b. That the sum of the squared error terms is equal to 0.

c. That the independent variable has mean 0.

d. That the variance of the error term is constant across values of the independent variable

A regression analysis between demand (yin 1000 units) and price (xin dollars) resulted in the following equation:

y =93x

The above equation implies that if the price is increased by $1, the demand is expected to _____.

a. decrease by 3,000 units

b. decrease by 6,000 units

c. decrease by 3 units

d. increase by 6 units

In a regression analysis, if r² = 1, then _____.

a. SSE = 1

b. SSR = SST

c. SSE = SST

d. SSR = SSE

e. b₁=1