FIN534 Chapter 6.1 Trendlines & Regression

A regression model that involves a single independent variable is called ______.

• Single regression

• Unit regression

• Simple regression

• Individual regression

Which of the following is true of linear functions used in predictive analytical models?

• It is used when the rate of change in a variable decreases at a decreasing level

• It is used when there is a steady decrease or increase over a range of a variable

• It is used when there is increase at increasing rate

• It is used when there is rise or fall at a constant rate

______ are mathematical functions used in predictive analytical models which define phenomena that increase at a specific rate, and is represented by the formula $y=ax^b$  

• Exponential functions

• Power functions

• Polynomial functions

• Linear functions

 $y=ax^3+bx^2+cx+d?$  

Which of the following mathematical functions, used in predictive analytical models, is represented by the formula above?

• Polynomial functions

• Exponential functions

• Power functions

• Logarithmic functions

In Excel's Trendline tool, the value of the ______ gives the measure of fit of line to the data.

• linear function

• R-squared

• p-value

• intercept value

Which of the following is true of the R-squared value?

• A value of 1.0 for R-squared indicates maximum deviation of the data from the line

• If the value of R-squared is above 1.0, the line will be at a perfect fit for the data

• The value of R-squared will always be between -1 and 1

• As the value of R-squared increase, the line will be a better fit for the data

For an independent variable Y, the error associated with the  $i^{th}$  observation is:

• ei = Yi - Ŷi

• Yi = (ei)^2 - Ŷi

• (Ŷi)^2 ei = Yi

• ei = (Yi + Ŷi)^2

Which of the following Excel functions is applied to test for significance of regression?

• COVAR

• ANOVA

• F-test

• TREND