1. Regression analysis creates a mathematical function which predicts the value of the [blank] on the basis of the [blank].
   1. independent variable; dependent variable
   2. dependent variable; independent variable
   3. correlation; variance
   4. variance; correlation

1. The difference between observed points and the regression line points is equal to:
   1. the correlation.
   2. the slope.
   3. the error term.
   4. the Y-intercept.

1. In regression analysis:
   1. the independent variable must be categorical in nature.
   2. the variables being investigated must not be correlated.
   3. the independent variable is indisputably influenced by the dependent variable.
   4. one variable is believed to be influenced by the other.

1. Which of the following is NOT a requirement for OLS regression analysis?
   1. Interval data
   2. Straight line relationship
   3. Random sampling
   4. All of the above are requirements

1. Regression allows us to quantify the impact of one variable on another with the [blank].
   1. standard deviation
   2. slope
   3. skew
   4. symmetry

True False ( point each)

1. Dummy variables cannot be used as predictors in regression analysis. True False

1. In a multiple regression, the effect of multiple independent variables on a single dependent variable is considered. True False