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QUESTION 14 Which of these statements is best? A A' The regression model assumes the error terms are dependent. C B. The regression model assumes

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QUESTION 14 Which of these statements is best? A A' The regression model assumes the error terms are dependent. C B. The regression model assumes the errors are normally distributed. C C. The errors in a regression model are assumed to have an increasing mean. A . . . D' The errors in a regressron model are assumed to have zero variance. QUESTION 15 A healthcare executive is using regression to predict total revenues. She is deciding whether or not to include both patient length of stay and insurance type in her model. Her first regression model only included patient length of stay. The resulting r2 was .83, with an adjusted r2 of .82 and her level of signicance was .003. In the second model, she included both patient length of stay and insurance type. The r2 was .84 and the adjusted r2 was .80 for the second model and the level of signicance did not change. Which of the following statements is true? A A. The second model is a better model. A B- The rst model is a better model. C C- The r2 increased when additional variables were added because these variables signicantly contribute to the prediction of total revenues. C D' The adiusted r2 alwavs increases when additional variables are added to the model

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