Independent Variables Multiple Choice Questions with Answers – PDF Download

MCQ 1: 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

MCQ 2: 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

MCQ 3: 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

MCQ 4: 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

MCQ 5: 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