Which of the following is not used for evaluating a regression analysis? a. standard error b. t-value c. correspondence d. R-squared e. multicollinearity | Homework.Study.com (2024)

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• Which of the following is not used for evaluating a regression analysis? (a) Correspondence. (b) T-value. (c) R-Squared. (d) Standard error. (e) Multicollinearity.
• Regression analysis does not assume a: - linear relationship between the dependent and independent variable(s). - normal distribution of the actual values (y) around the predicting equation (y'). - constant variance for the independent error terms (e) fro
• The standard error estimate is computed as the square root of the mean squared error and it is a standard deviation of the errors. It is therefore useful for to making a judgment about the fit of regression model in conjunction with the assumption that: a
• Which of the following is not used to evaluate the accuracy of regression results? a. Mean absolute deviation b. Coefficient of determination c. Prediction confidence interval d. T-statistic
• Which of the following statement(s) about multiple regression analysis is FALSE? A. Multiple regression analysis allows you to analyze more than one dependent (Y) variable at a time. B. Multicollinearity occurs when the X variables are highly correlated
• Which of the following measures the average relationship between a stock's returns and the market's returns? a. Coefficient of validation. b. Standard deviation. c. Geometric regression. d. Beta coefficient.
• Which of the following measures the average relationship between a stock's returns and the market's returns? a. standard deviation b. beta coefficient c. geometric regression d. coefficient of validation
• Which of the following would not likely be useful for addressing the variance-investigation decision under uncertainty? a) Calculating the indifference probability. b) Linear optimization analysis.
• We generally need _____ data points to get reliable regression results using the least-squares regression method. a. at least 20. b. six to eight. c. as many as possible. d. only two.
• Regarding Regression analysis involving only one independent variable: a. The best method for solving this is a visual fit of a line to the data. b. The best method for solving requires "hyperplane" fit to data. c. The least-squares method is mathematica
• Regarding regression analysis involving only one independent variable: a. the best method for solving this is a visual fit of a line to the data. b. best method for solving requires "hyperplane" fit to data c. least squares method is mathematically the
• Which approach to data analytics attempts to estimate or predict, for each unit, the numerical value of some variable using some type of statistical model? a. Regression. b. Similarity matching. c. Data reduction. d. Classification.
• Describe the relationship between independent and dependent variables with regard to correlation and regression analysis. Is regression analysis used in forecasting?
• Which of the following requires the calculation of standard deviation? a) Classical Variables Sampling b) PPS c) Traditional Variables Sampling d) MUS
• Which of the following statements is incorrect? a. In deciding whether to investigate a variance, managers should not consider the materiality of the variance. b. A material variance is one that wil
• When completing a variance analysis, we describe variances as: A) good or bad B) positive or negative C) favorable or unfavorable D) ideal or less-than-ideal
• Which of the following is not a quantitative forecasting method? a. Moving average model b. Classical decomposition c. Delphi method d. Simple regression
• 1. Sage, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statistics Multiple R0.9682 R Square0.9374 Observations30 CoefficientsSta
• Discuss the meanings of dependent and independent variables in regression analysis.
• Which of the following statements is incorrect? Choose One: a. In deciding whether to investigate a variance, managers should not consider the materiality of the variance. b. A material variance is o
• Coefficients shown by a regression program for Pizza Vesuvio's data are: Intercept 4, 517 X Variable 8.20 Required: Use the results of regression to make the following calculations: 1a. Calculat
• Why do you think the least-squares regression method tends to provide more accurate results than the high-low method? Which one would be the easiest to use?
• The expected value of the random variable is: a. the standard error b. the sample size c. the size of the population d. None of these alternatives is correct.
• In the standard regression equation of y = a + bx, the letter a is best described as the: A. independent variable. B. dependent variable. C. slope of the equation. D. intercept of the equation.
• A. Given the following scenarios based on ABC, Inc. common stock, calculate the Expected Return, Variance, and Standard Deviation of the returns. |Scenario| Probability| HPR (%) |Server recession| 0.15| -27 |Mild recession| 0.15| -11 |Normal growth| 0.40|
• Which function is best suited to determine how the data set is spread around the mean? a) COVARIANCE b) CORREL c) STDEV.P d) VARA
• Which of the following below requires the calculation of standard deviation? (a) Classical Variables Sampling (b) PPS (c) Traditional Variables Sampling (d) MUS
• The covariance of two stocks was calculated at -.01733. If the standard deviation of the first stock is .106 and .164 for the second, determine the correlation. A. -.587 B. -.887 C. -.997 D. -.687
• Which statement is incorrect? 1) unfavorable variance has the effect of diversing operating income relative to the budget amount. 2) static budgets do not change for variance analysis. 3) positive number is always a favorable variance 4) variances are
• When do variances need to be investigated and who must be responsible for correcting a negative variance? What are some of factors that can lead to variances? Explain.
• Which of the following has the same meaning incremental analysis does? a. Detrimental analysis b. Opportunity analysis c. Accidental analysis d. Differential analysis
• 1. Evaluate the following statements concerning variance analysis. Be sure to provide specific examples to justify your evaluations. a) When evaluating variances, it is best for managers and others to consider one variance at a time rather than groups of
• Consider the following time series data Using the nave method most recent value as the forecast for the next week compute the following measures of forecast accuracy b Mean squared error If required,
• Calculate the variable support rate variance.
• The coefficient of determination or R-squared is a measure of a) reliability b) neither reliability or plausibility c) plausibility d) both reliability and plausibility
• Which of the following is a provision of the central limit theorem? a) A skewed distribution will remain skewed however it is plotted. b) There are limits to the range of scores that can be fitted t
• Which of the following would cause the auditor to not use attribute sampling? a. The computed upper deviation rate is less than the tolerable rate b. The estimated population deviation rate is greater than the confidence level c. The estimated populatio
• Refer to the following observations for stock Y and the market portfolio (M) for the question below. [TABLE] Compute the sample standard deviations for Y and M.
• Number of observations in regression analysis is considered as: a. degree of possibility b. degree of average c. degree of variance d. degree of freedom
• The scatterplot method: A. is preferable over the high-low method as managerial judgment can eliminate outliers B. is less accurate than the high-low method C. is more accurate than regression analysis D. always ignores the high point and the low point
• Evaluate the following statements concerning variance analysis. Be sure to provide specific examples to justify your evaluations. a) When evaluating variances, it is best for managers and others to consider one variance at a time rather than groups of va
• The least-squares method is based upon a) minimizing the explained variation b) maximizing the explained variation c) minimizing the unexplained variation d) maximizing the unexplained variation.
• Refer to the following observations for stock Y and the market portfolio (M) for the question below. [TABLE] Compute the sample residual variance associated with stock Y's characteristic line.
• Refer to the following observations for stock Y and the market portfolio (M) for the question below. [TABLE] Compute the sample covariance between returns for Y and M.
• Refer to the following observations for stock Y and the market portfolio (M) for the question below. [TABLE] Compute the sample correlation coefficient between the returns of Y and M.
• How do you calculate variances as favorable or unfavorable? Indicate whether each of the following variances are favorable (F) or unfavorable (U). The first one has been done as an example. || Item to classify || Standard || Actual ||Type of Variance | S
• What does a negative COVARIANCE indicate? a. An inverse relationship between the data sets b. A statically insignificant data set c. No relationship between the data sets. d. A positive relationship between the data sets
• A stock has an expected return of 0.13 and a variance of 0.22. What is Its coefficient of variation?
• A stock has an expected return of 0.09 and a variance of 0.20. What is the coefficient of variation?
• A stock has an expected return of 0.09 and a variance of 0.20. What is its coefficient of variation?
• Mean Loss $8,442 Standard Deviation of Losses $28,663 What is the VaR (approximate) using the percentile approach with a 95% confidence level?
• Which of the following does the efficiency variance measure? a. the difference between the quantity used by the company and the quantity used by its competitors b. the change in quantities used over time c. the difference between actual and standard quant
• Which of the following methodologies would be most appropriate for stress testing your portfolio? A. Delta gamma valuation B. Full revaluation C. Marked to market D. Delta normal VAR
• When performing a variance analysis, what are the possible causes for unfavorable or favorable variances? How could this type of analysis help managers?
• Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a correlation coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12%, a standard deviation of returns of 27%, a 0.7
• Which of the following would affect to quality of earnings? a. Alternative accounting methods. b. Pro forma income. c. Improper recognition. d. All of these answer choices are correct
• The covariance of the returns between Willow Stock and Sky Diamond is 0.0930. The variance of Willow is 0.2500 and the variance of sky diamond is 0.1360. What is the correlation coefficient between the two returns of the two stocks?
• Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance? A. Defective materials caused more labor to be used in order to produce a standard unit. B. The m
• 3. What is a variance? What determines whether the variance is favorable or unfavorable? 4. How is each of the following variance calculated? a. Direct Materials Price Variance (DMPV) b. Dire
• Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance? a. The mix of workers assigned to the particular job was heavily weighted towards the use of highe
• Which of the following are true regarding weights assigned to deviational variables? a. The weights assigned can be negative. b. The weights assigned must sum to one. c. The weight assigned to the
• Which of the following statements is true? a. Variances in different areas are never related. b. Unfavorable variances always indicate a performance problem. c. Repeating favorable variances could indicate that the standards are too easy to meet. d. M
• Which of the following choices are important when designing statistical tests of a hypothesized causal business model? a) The desired economic outcomes (e.g., profits, revenue growth, contract renewa
• Determining amount and type (favorable vs unfavorable)of variance required compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable(U)
• Which of the following does NOT affect quality of earnings? A: improper recognition, B: extraordinary items, C: alternative accounting methods, or D: pro forma income?
• Which of the following is not a qualitative forecasting method? a. Executive opinions b. Salesforce polling c. Delphi method d. Classical decomposition
• Excel's solver is used in time series weighted moving average problem to: a. predict estimate for more than one p-period into future. b. maximize the MSE c. minimize the mean square error. d. none of the above.
• Determine the controllable variance.
• Which of the following is not a characteristic of relevance? a. Materiality b. Predictive value c. Verifiability d. Confirmatory value
• Compute the variances based on the problem data below. Colonial Pewter makes pewter bookends. Use the data below to calculate the 2 variances and the total variance. Also state whether each variance
• If the range of X is the set {0,1,2,3,4} and P(X = x) = 0.2, determine the mean and variance of the random variable.
• Variances indicate: a. the cause of the variance. b. who is responsible for the variance. c. that actual performance is not going according to plan. d. when the variance should be investigated.
• Distinguish between a sampling error and a non-sampling error. How can each be reduced?
• In the Analysis of Variance table, the sum of squares |a.| is always negative |b.| is always positive |c.| is sometimes negative. |d.| can be positive or negative depending on the data
• Which type of variance causes operating income to be lower than the budgeted operating income? a. Unfavorable variance b. Reverse variance c. Neutral variance d. Favorable variance
• Horse Stock returns have exhibited a standard deviation of 0.57, whereas Mod T Stock returns have a standard deviation of 0.63. The correlation coefficient between the returns is 0.078042. What is the covariance of the returns?
• Which of the following errors will cause the trial balance totals to be unequal? A. Errors of transposition. B. Errors of omission. C. Errors of principle. D. All of the above.
• The covariance of the returns between Willow stock and Sky Diamond stock is 0.0600. The variance of Willow is 0.2670, and the variance of Sky Diamond is 0.1220. What is the correlation coefficient between the returns of the two stocks?
• What is the purpose of using regression analysis? How might a regression analysis be used to formulate strategies? Provide examples related to strategy formulation and implementation.
• List the features of scatter diagrams, least-squares regression, and the high-low method. Determine which of the three tools will typically produce the most accurate results.
• Evaluate the following question, and give a hypothetical example that will back up your answer. When evaluating variances, is it best for managers and others to consider only one variance at a time? If so, why? If not, why not?
• A forecasting technique that is a combination of the last forecast and the last observed value is called: a. Delphi. b. Least squares. c. Regression. d. Exponential smoothing.
• What is the expected return if the correlation coefficient (\rho) between the investment returns is 0.7? A) 70% B) 10% C) 20% D) 0% ||Item Description ||Name ||Value |Investment #1 Expected Return | r_{1}|20.00% |Investment #2 Expected Return | r_{2}|2
• What is an advantage of the correlation coefficient over the covariance? A) It falls between -1 and 1. B) It falls between 0 and 1. C) It is a unit-free measure, therefore making it easier to interpret. D) It falls between -1 and 1; and it is a unit fr
• Consider the following time series data. Using the naive method most recent value as the forecast for the next week, compute the following measures of forecast accuracy. a Mean absolute error. If requ
• Refer to the following observations for stock Y and the market portfolio (M) for the question below. [TABLE] Explain what the residual variance associated with a stock's characteristic line is supposed to tell you.
• Which of the following statement(s) is/are true of the qualitative characteristic "reliability"? A. Information that is free from material bias and error. B. Information that faithfully represents what it purports to represent. C. Information that should
• Evaluate the following question and give a hypothetical example. When evaluating variances, is it best for managers and others to consider only one variance at a time? State whether this is a good idea or a bad idea.
• Which of the following statements represent a weakness or limitation of ratio analysis? a. Seasonal factors can distort data. b. Market data is not sufficiently considered. c. Window dressing might be in effect.
• Which of the following statements comparing ROI and residual income is correct? a. ROI is more useful as a performance measure for a single investment center. b. ROI and residual income are equally good performance measures for a single investment center.
• Which of the following is not true regarding capital market research? A) Studies have found a low correlation between the variability of accounting earnings and beta. B) Studies have found a strong association between accounting-based ratios and the marke
• Which of the following does the efficiency variance measure? a. the difference between the quantity used by the company and the quantity used by its competitors b. the change in quantities used over time c. the difference between act
• Expected Return: Discrete Distribution The market and Stock J have the following probability distributions: Probability r(m) r(j) 0.3 16% 20% 0.4 9 7 0.3 19 13 a. Calculate the expected rate of retu
• In a Chi-Square goodness-of-fit test for the normal distribution, expected frequencies can be calculated by using c-3 degrees of freedom. a. Are different for every bin. b. Are equal to the sample size divided by the number of bins used. c. Are not nee
• The desired sample depends on all of these factors except? a) The desired certainty of results expressed as a z score. b) The variance in the data set. c) The allowable error or variation from the
• Evaluate the following statement: "Favorable" variances represent good performance and "unfavorable" variances represent bad performance. Provide specific examples to justify your evaluation.
• Which of the following is a measure of predictive ability? A) Objectivity B) Bias C) Timeliness D) Productivity
• Which of the following statements about the percent-of-sales method of financial forecasting is true? a. It is the least commonly used method of financial forecasting. b. It is a much more precise method of financial forecasting than a cash budget would
• How do the desired confidence level, risk of material misstatement, and tolerable and expected misstatements affect the sample size in a non-statistical sampling application?
• Which of the following statements is true about what caused the shift in paradigm from normative to positive research? A. The shift resulted from US reports on business education, and improved computing facilities enabling largescale statistical analysis