lianai

 

The correct answer is B

H0: bgender ≤ 0

Ha: bgender > 0

t-value of 1.58 < 1.65 (critical value)

lianai

 

5、Jacob Warner, CFA, is evaluating a regression analysis recently published in a trade journal that hypothesizes that the annual performance of the S& 500 stock index can be explained by movements in the Federal Funds rate and the U.S. Producer Price Index (PPI). Which of the following statements regarding his analysis is most accurate?

A) If the p-value of a variable is less than the significance level, the null hypothesis cannot be rejected.

B) If the p-value of a variable is less than the significance level, the null hypothesis can be rejected.

C) If the t-value of a variable is less than the significance level, the null hypothesis can be rejected.

D) If the t-value of a variable is less than the significance level, the null hypothesis cannot be rejected.

lianai

 

When a number of independent variables in a multiple regression are highly correlated with each other, the problem is called:

A) autocorrelation. 

B) homoskedasticity.

C) heteroskedasticity. 

D) multicollinearity.

lianai

 

The correct answer is D

Multicollinearity is present when the independent variables are highly correlated

 

lianai

 

4、In a recent analysis of salaries (in $1,000) of financial analysts, a regression of salaries on education, experience, and gender is run. Gender equals one for men and zero for women. The regression results from a sample of 230 financial analysts are presented below, with t-statistics in parenthesis.

Salaries = 34.98 + 1.2 Education + 0.5 Experience + 6.3 Gender

       (29.11)          (8.93)                (2.98)                (1.58)

What is the expected salary (in $1,000) of a woman with 16 years of education and 10 years of experience?

A) 54.98.

B) 61.28. 

C) 65.48.

D) 59.18.

lianai

 

The correct answer is D

66,500 + 74.30(2,000) + 10,306(4) = $256,324

 

lianai

 

What percent of the variability in the dependent variable is explained by the independent variable?

A) 40.73%. 

B) 56.00%. 

C) 21.11%.

D) 12.68%. 

lianai

 

The correct answer is B

R2 = 0.56

 

lianai

 

The model indicates that at the 5% level of significance:

A) the slopes are not significant but the constant is. 

B) neither the slopes nor the constant are significant. 

C) the slopes are significant but the constant is not.

D) the slopes and the constant are statistically significant. 

lianai

 

The correct answer is C

DF = N ? k ? 1 = 32 ? 2 ? 1 = 29. The t-critical value at 5% significance for a 2-tailed test with 29 df = 2.045. T-values for the slope coefficients are 3.52 and 3.19, which are both greater than 2.045 (critical value). For the constant, the t-value of 1.2 < 2.045.