INIGO MONTOYA'S MULTIPLE CHOICE QUESTIONSBusy avenging the murder of his father, Inigo Montoya asks you to answer the following questions by circling the best answer(s) for each.

a)If we add one more explanatory variable to a regression model, the new model will have: (circle all that apply)

1)Larger or the same R² than the old model

2)Larger or smaller R² than the old model

3)Smaller s_e than the old model

4)Larger or smaller s_e than the old model

b)In a regression model with dependent variable Y and explanatory variables X₁ and X₂, we want: (circle all that apply)

1)Y and X₁ to be strongly correlated

2)Y and X₂ to be strongly correlated

3)X₁ and X₂ to be strongly correlatedc)

In the Excel output for a regression model with two explanatory variables X₁, X₂, which is true about Significance F? (circle all that apply)

1)It is the probability that the regression is significant as a whole.

2)It is the probability that the regression result we observed is solely due to chance.

3)It is equal to the p-value for the following hypothesis test:H₀: _X1 = 0, H_a: _X1 0, where _X1 is the population slope coefficient for variable X₁

d)When Inigo uses Excel to run a regression analysis, he believes the intercept and slope coefficients that Excel gives are population parameters (as opposed to sample statistics).This is (circle one):

1)True

2)False

e)Inigo believes that if a regression of Y on X has an R² of 0.80, then a regression of X on Y will have an R² of 0.80.This is (circle one):

1)True

2)False