Table 4.1 SUMMARY OUTPUT Regression Statistics Multiple R 0.99794806 R Square Missing Adjusted R Square 0.99513164 Standard Error 1.64839211 Observations 20 ANOVA df SS MS F Significance F Regression Missing 10561.07486 Missing 1295.585 2.66E-19 Residual 16 43.47514498 2.717197 Total 19 10604.55 Coefficients Standard Error t Stat P-Value Intercept 0.562 1.327 0.424 0.677 X1 0.959 D.038 25.245 0.000 X2 1.117 0.125 8.916 0.000 X3 1.460 0.066 22.185 0.000 29) Consider the output shown in Table 4.1. What is the value of the regression df? 29) A) 0 B) 1 C) 2 D) 3 30) A healthcare executive is using regression to predict total revenues. She has decided to include both 30) patient length of stay and insurance type in her model. Insurance type can be grouped into three categories: Government-Funded, Private-Pay, and Other. Her model is A) Y= bo. B) Y=60 + b1 X1. C) Y = b0 + b1 X1 + b2 X2 + 63 X3. D) Y = b0 + 61 X1 + b2 X2. 31) Which of these equations is a linear model? 31) A) Y= b0 + b1 In(X) where X = time B) Y =b0 + b1 X, where X = time2 C) Y =b0 + b1 X, where X= In(time) D) Y =60 + 61 X, where X = time 32) Which of the following statements provides the best guidance for model building? 32) A) If the value of r2 increases as more variables are added to the model, the variables should not remain in the model, regardless of the magnitude of the increase B) If the value of the adjusted r2 increases as more variables are added to the model, the variables should remain in the model. C) If the value of r2 increases as more variables are added to the model, the variables should remain in the model, regardless of the magnitude of increase. D) If the value of the adjusted r2 increases as more variables are added to the model, the variables should not remain in the model.33) Which of these statements is best? 33) A) The standard error of the estimate is also called the variance of the regression. B) If the assumptions of regression have been met, errors plotted against the independent variable will typically show patterns. C) Often, a plot of the residuals will highlight any glaring violations of the assumptions. D) The error standard deviation is estimated by MSE. 34) In the model Y = Bo + $1X1 + 32X2 + &, which of these parameters represents a dependent variable? 34) A) the X1 B) the Y C) the E D) the B1 35) A reference to the criterion used to select the regression line, to minimize the squared distances 35) between the estimated straight line and the observed values is called A) Least Squares. B) Maximum likelihood. C) Sum of Squares. D) Mean square error. 36) The MBA program surveyed the catastrophe that was his fall 2017 intake. His 257 admitted 36) students had performed miserably and he needed to determine why. He built a regression model to predict their overall class average after their first semester based on these factors that weighed heavily in their admission process: undergraduate GPA, GMAT score, years of professional employment, shoe size, TOEFL score, and 40 yard dash. How many degrees of freedom should the F test denominator have? A) 257 B) 251 C) 263 D) 250 37) An air conditioning and heating repair firm conducted a study to determine if the average outside 37) temperature could be used to predict the cost of an electric bill for homes during the winter months In Houston, Texas. The resulting regression equation was: Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature If the temperature averaged 48 degrees during December, what is the forecasted cost of December's electric bill? A) $179.19 B) $227.19 C) $69.60 D) $157.59 38) Which of the following is not one of the steps considered in the "Six Steps in Decision Making"? 38) A) Apply the model and make your decision. B) Clearly define the problem at hand. C) List the possible alternatives. D) Evaluate the success of the decision