Question: 1 When Weighted Least Squares (WLS) is utilized to correct for heteroskedasticity, the best choice of weight variable is: A. one that is proportional to

1

When Weighted Least Squares (WLS) is utilized to correct for heteroskedasticity, the best choice of weight variable is:

A.

one that is proportional to the (non-constant) variance of the errors

B.

any X variable that is highly correlated with other X variables

C.

the inverse of the square of the smallest variable

D.

a constant vector (with only one value)

2

The dummy variable coding method that uses only 1 and 0 to represent values is

A.

effect coding

B.

interaction coding

C.

reference coding

D.

forward selection

3

The theory that we can test certain constraints on a regression model by further decomposing the Error Sum of Squares is the:

A.

general linear hypothesis

B.

theory of least squares

C.

general linear model

D.

correct model specification

4

The dummy variable coding method that uses 1, 0, and -1 to code the distinct values of a non-numeric variable is called:

A.

effect coding

B.

reference coding

C.

SAS coding

D.

inverse coding

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