Independent Variables MCQ (Multiple Choice Questions) PDF Download

An assumption, which states that there must be linear relationship between independent variable and dependent variable is

1. irrelevant range of linearity
2. relevant range of linearity
3. significant range
4. insignificant range

In multicollinearity, the correlation coefficient between two independent variables must be greater than

1. 0.7
2. 0.6
3. 0.5
4. 0.4

An estimated coefficient, which indicates the degree by which the estimated values are affected by random factors is known as

1. standard error of estimated coefficient
2. weighted error of estimated coefficient
3. average of estimated coefficient
4. variance of estimated coefficient

For slope coefficient b, the value of the estimated coefficient is considered as

1. d-value
2. c-value
3. t-value
4. b-value

The situation in which two or more independent variables are highly correlated is known as

1. price linearity
2. cost linearity
3. division linearity
4. multi-collinearity