Multiple Regression Analysis: Estimation

Front

What is the equation for the multiple linear regression model?

Back

y = β₀ + β₁x₁ + β₂x₂ + ... + βₖxₖ + u

Front

In the multiple linear regression model, what does 'y' represent?

Back

Dependent variable

Front

What is one motivation for using multiple regression?

Back

To incorporate more explanatory factors into the model

Front

What would omitting average family income in regression lead to?

Back

Biased estimate of the effect of spending on average test scores

Front

What is the purpose of OLS estimation in the context of multiple regression analysis?

Back

To minimize the sum of squared residuals

Front

Back

The slope coefficient for the j-th predictor variable

Front

In a multiple regression model, the term 'Ceteris paribus' implies:

Back

All other variables are held constant.

Front

In a multiple regression model, it is assumed that unobserved factors do not change if the explanatory variables are changed.

Back

True

Front

R-squared can only increase if another explanatory variable is added to the regression.

Back

True

Front

What is Assumption MLR.1 in the context of the multiple regression model?

Back

Linear in parameters