# regression analysis

I found this in an old level1 mock exam, u guys might like it Which one of the following statements is TRUE? A) The linear trend equation is y = a + b(t). B) The curvilinear trend equation is log (y) = a + log (b)*(t). C) A linear series increases by a constant percentage over time. D) A curvilinear series increases by a constant amount over time. ________________________________________ Which of the following statements are TRUE? I. Given: n = 5, ÓX = 20 and ÓY = 30, if beta = 1 alpha is 2. II. The bigger the standard error of estimate the bigger the R2. III. If alpha is 2 and beta is 1, if Y is given to be 3 then X would be 5. IV. Regression analysis assumes there is a linear relation ship between the X and Y variables. A) I and IV only. B) I and II only. C) I and III only. D) I, III, and IV only.

Ans to the first qtn: A Is that weird symbol supposed to be sigma? i…e sigma x = 20 and sigma y = 30?

> Which of the following statements are TRUE? > I. Given: n = 5, ÓX = 20 and ÓY = 30, if beta = 1 > alpha is 2. > II. The bigger the standard error of estimate the > bigger the R2. > III. If alpha is 2 and beta is 1, if Y is given to > be 3 then X would be 5. > IV. Regression analysis assumes there is a linear > relation ship between the X and Y variables. > A) I and IV only. > B) I and II only. > C) I and III only. > D) I, III, and IV only. I think there might be missing info. But by process of elimination: II is false, therefore “B” is eliminated. III is false, because 3 doesn’t equal 2 + 1*5. This eliminates C and D. IV is true ==> only A and D are feasible, but since D was eliminated, it must be A. However, I don’t see how you can show the relationship between beta and alpha given the info in A. Anyone? Bueller?