MGT 6203

Homework 1 - Solutions Question 1 Choose the correct statement regarding the sum of residuals calculated using Ordinary Least Squares (OLS). A. The sum of residuals will always be nonzero whatever the form of the linear regression as long as you are using OLS to estimate the coefficients. B. The sum of residuals will always be equal to zero if you include intercept term in your model and you are using OLS to estimate the coefficients C. The sum of residuals may or may not be zero when using OLS ...

Homework 1 - Solutions Question 1 Choose the correct statement regarding the sum of residuals calculated using Ordinary Least Squares (OLS). A. The sum of residuals will always be nonzero whatever the form of the linear regression as long as you are using OLS to estimate the coefficients. B. The sum of residuals will always be equal to zero if you include intercept term in your model and you are using OLS to estimate the coefficients C. The sum of residuals may or may not be zero when using OLS ...

MGT 6203 MIDTERM – SOLUTION KEY THEORY QUESTIONS WITH ANSWERS.*Q1) Consider a linear regression model with 2 independent variables (assume both are correlated with the response variable). If we add an interaction term between the independent variables to the model, how will the model be affected: A) The R2 will increase (or remain the same) with certainty while the adjusted R2 can increase or decrease B) Both the R2 and adjusted R2 will increase with certainty. C) The R2 will decrease (or rema...

MGT 6203 MIDTERM – SOLUTION KEY PART 2 CODING QUESTIONS WITH ANSWERS.) Please estimate a linear regression model (using the lm function) with Personal as the dependent variable and Room.Board as the independent variable. What are the model’s Rsquared and adjusted R-squared values? a) 0.00549, 0.048 b) 0.0143, 0.022 c) 0.0398, 0.0385 d) 0.0325, 0.0336 Answer: C (Week 1 Lesson 4) library("ISLR") data("College") summary(lm(College$Personal~College$Room.Board)) ## ## Call: ## lm(formula = Co...

Suppose we run a factor regression for a stock fund to see which factors explain its return and get the following output: Which campaign (campaign_id) has produced least number of ads with organic impressions? Among ads with organic impressions, which ad (ad_id) has the highest number of impressions?

1 Q1) What would be the null hypothesis for the regression F-test for the following equation Y = b0 + b1 x1 + b2 x2 + u A. b1 = 0 and b2 = 0 B. b 1 = 0 or b2 = 0 C. b0 = 0 and b1 = 0 and b2= 0 D. b0 = 0 or b1= 0 or b2 = 0 Ans: A, the regression F-statistics test the joint null hypothesis that the values of all the coefficients of explanatory variables except the constant are 0. The intercept is not included in the hypothesis. (Week 1, slide 24 and 32) Week 2 Q2) Which type of model does NOT allo...