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Define Interpretation of coefficients in polynomial regression models?
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- What are the consequences in the regression results if multicollinearity is present in the regression model?What is Regression Model in econometrics?In multiple regressions, the correlation coefficient of each independent variable can be measured in addition to the multiple correlation coefficient. How do the values of individual correlation coefficients compare to the value of the multiple correlation coefficient?
- Which of the following statements concerning the least squares regression of Y on X depicted in the graph below is true?A realtor was investigating the price of real estate based on the size of the house in square feet x1 and if the house was within walking distance of an "A" rated public school. The indicator variable is defined as x = 1 if the house is within walking distance of an "A" rated public school and x = 0 if the house is NOT within walking distance of an "A" rated public school. If there was interaction in the regression problem, an appropriately fit regression model would have…? a) A different slope and different y-intercept for those within walking distance and those not. b) A different y-intercept for those that were within walking distance and those that were not; the slope would not change. c) A different slope, but not a different y-intercept for those within walking distance and those not. d) Cannot be determinedWhat is a linear regression model? What is measured by the coefficients ofa linear regression model? What is the ordinary least squares estimator?
- All the regression assumptions lie on the residuals, for both simple and multiple regression. True or False?Which one of the following is NOT an assumption of the classical linear regression model (CLRM)? Select one: a. The disturbance terms are independent of one another. b. The dependent variable is not correlated with the disturbance terms. c. The explanatory variables are uncorrelated with the error terms. d. The disturbance terms have zero mean.Issues of multicollinearity impacted the ‘validity and trustworthiness’ of a regression model. Demonstrate how this issue can be a problem by using appropriate hypothetical example.