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MBA Business Statistics MCQs – Practice Test 1 (Chapter 10)

Multiple Regression Model MCQs with Answers PDF Download – Test 1

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Multiple Regression Model MCQs – Practice Test 1 PDF Download

MCQ 1: In multicollinearity, due to high variance and standard error, t-test will become statistically:

  1. Significant
  2. Insignificant
  3. Very high
  4. Very low

MCQ 2: To test the stability of parameters and estimating the source of change i.e. in slope or in intercept is possible through:

  1. Binomial coefficient approach
  2. Phi-coefficient approach
  3. Dummy variable approach
  4. Accurate Chow approach

MCQ 3: In the exponential model, if independent variable 'x' increases by 1%, y will increase by:

  1. 0.01
  2. 1 unit
  3. β2 %
  4. β2 units

MCQ 4: In chow test, the degree of freedom for unrestricted residual sum of square is set as:

  1. n1-n2+2k
  2. n1-n2-2k
  3. n1+n2-2k
  4. n1+n2-k

MCQ 5: Closer the value of tolerance to 1, for which there exists:

  1. Less chance of multicollinearity
  2. High chance of multicollinearity
  3. Less chance of perfect multicollinearity
  4. High chance of perfect multicollinearity

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