Exam 2 ReviewData referenced throughout reviewInteractions, Dummy Variables and Nesting (1)Interactions, Dummy Variables and Nesting (2)Interactions, Dummy Variables and Nesting (3)Interactions, Dummy Variables and Nesting (4)Interactions, Dummy Variables and Nesting (5)Selecting Variables (1)Selecting Variables (2)Selecting Variables (3)Selecting Variables (4)Selecting Variables (5)Building Models and Avoiding Pitfalls (1)Building Models and Avoiding Pitfalls (2)Building Models and Avoiding Pitfalls (3)Building Models and Avoiding Pitfalls (4)Building Models and Avoiding Pitfalls (5)Residual Analysis (1)Residual Analysis (2)Residual Analysis (3)Residual Analysis (4)Residual Analysis (5)Exam 2 ReviewData referenced throughout reviewAn Educational Testing Service (ETS) research scientist used multiple regression analysis to model y, the final grade point average (GPA) of business and management doctoral students (Journal of Educational Statistics, Spring 1993). Potential independent variables measured for each doctoral student in the study include:Quantitative Graduate Management Aptitude Test (GMAT) scoreVerbal GMAT scoreUndergraduate GPAFirst-year graduate GPAStudent cohort (i.e., year in which the student entered doctoral program: 1988, 1990, 1992)Interactions, Dummy Variables and Nesting (1)_____________ means the smaller number of βs, the better. Simpler models are easier to understand and appreciate, and therefore have a "beauty" that their more complicated counterparts often lack.Interactions, Dummy Variables and Nesting (2)What does it mean when two independent variables interact?Interactions, Dummy Variables and Nesting (3)For Student Cohort (i.e., year in which the student entered doctoral program: 1988, 1990, 1992) set up the appropriate dummy variable.Interactions, Dummy Variables and Nesting (4)Write a model for final GPA, y, that allows for a different slope for each student cohort.Graduate Management Aptitude Test (GMAT) scoreVerbal GMAT scoreUndergraduate GPAFirst-year graduate GPAStudent cohort (i.e., year in which the student entered doctoral program: 1988, 1990, 1992)Interactions, Dummy Variables and Nesting (5)Write a model for final graduate GPA E(y) that proposes linear relationships between GPA and the two GMAT scores, such that the slopes of the lines depend on student cohort but not on the other GMAT score.Selecting Variables (1)What is the following describing? A regression in which a statistical software program begins by fitting all possible one-variable models to the data. The independent variable that produces the largest t value is declared the best one-variable predictor of y. A new variable is added until the given criteria for the t value can no longer be met.Selecting Variables (2)Identify the following variables as quantitative or qualitative:Graduate Management Aptitude Test (GMAT) scoreVerbal GMAT scoreUndergraduate GPAFirst-year graduate GPAStudent cohort (i.e., year in which the student entered doctoral program: 1988, 1990, 1992)Selecting Variables (3)When and why would we use a variable selection technique such as stepwise regression?Selecting Variables (4)What are the dangers associated with drawing inferences from a stepwise model?Selecting Variables (5)If I have selected Graduate Management Aptitude Test (GMAT) score, Verbal GMAT score and Undergraduate GPA as my Independent variables for predicting graduate GPA, what would the first order model be?What are the null and alternative hypotheses regarding the global utility of the model?What about the hypothesis tests regarding the contribution of undergraduate GPA?How do I test these hypotheses?Building Models and Avoiding Pitfalls (1)To fit a straight line, you need at least_____ different x values; To fit a curve you need at least ____.Building Models and Avoiding Pitfalls (2)What is extrapolation?Building Models and Avoiding Pitfalls (3)What is multicollinearity and how can you detect it?Building Models and Avoiding Pitfalls (4)Write a first-order model relating final GPA, y, to the five independent variablesGraduate Management Aptitude Test (GMAT) scoreVerbal GMAT scoreUndergraduate GPAFirst-year graduate GPAStudent cohort (i.e., year in which the student entered doctoral program: 1988, 1990, 1992) Interpret the β’s in the first order model.Building Models and Avoiding Pitfalls (5)Write the complete second-order model for the final grade point average for doctoral students E(y) based on the following variables (Include interactions and quadratic terms.)Graduate Management Aptitude Test (GMAT) scoreVerbal GMAT scoreUndergraduate GPAFirst-year graduate GPAStudent cohort (i.e., year in which the student entered doctoral program: 1988, 1990, 1992)Residual Analysis (1)An observation that is larger than 2 or 3s is a/n ___________________.Residual Analysis (2)What is the difference between homoscedastic and heteroscedastic and which is preferable?How can we use residual plots to detect departures from the assumption of equal variances? (Include a sketch of what you are looking for and what indicates a violation of this assumption.)Residual Analysis (3)What are the assumptions about the random error term?Residual Analysis (4)What is the purpose of reviewing Standardized Residuals, Leverages, Cook’s D, and/or DFFITS? Select one and tell how you might use it for this purpose.Residual Analysis