1. The disturbance term in linear regression incorporates the influences of all of the regressors in the linear regression.TrueFalse
2. Test H0: β2 = 1 vs. H1: β2 >1 if the following information from a simple regression is given: b2 = 1.39, sb2= 0.18, and n = 30.
- A. Reject H0 for α = 0.005
- B. Reject H0 for α = 0.025
- C. Reject H0 for α = 0.01
- D. Unable to reject H0 for α < 0.05
3. Which of the following will decrease the standard error of the slope estimate b2?
- A. None of these answers are correct.
- B. Increase the sample size.
- C. Increase the RSS.
- D. Decrease the variation in X.