Q No: 1

Correct Answer
Marks: 1/1

Which of the following equations is NOT an example of linear regression?

1. Y = -10 + 1.8 X1 – 2.3 X2 + error

2. Y = X1 + - error
3. Y= X1 – log X2 - + error

None of the above

You Selected
1

1,3

1,2
Q No: 2

Incorrect Answer
Marks: 0/1

In a certain regression problem, the following values are estimated.

SSR: Sum of Squares Regression = 200

SSE: Sum of Squares Errors = 50

What is the value of The Coefficient of determination?

4/5
Correct Option
1/4

3/4

1/5
You Selected
Q No: 3

Correct Answer
Marks: 1/1

Consider two alternative models:

Model 1: EP~T+V+AP+RH

R-squared: 0.926

VIF values are

T ---> 36

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 V ---> 73

AP ---> 45

RH ---> 22

Model 2: EP~T

R-squared: 0.899

Which model is preferable in terms of better interpretation?

Model 1 because R2 is higher

Model 1 because it is utilizing more predictors

Model 2 because Model 1 has high VIF problem and R2 values are comparable
You Selected
Model 2 because it is simpler
If there is a high degree of multicollinearity in the model, the p-values of the
coefficients become unstable and thus the significance of the variables becomes
unreliable.
Q No: 4

Incorrect Answer
Marks: 0/1
The values of the Variance Inflation Factor (VIF) start from 0 and there is no upper
limit.

True
You Selected
False
Correct Option
The formula for VIF is 1/1-R^2. Thus, the VIF values begin from 1 and there is no
upper limit.
Q No: 5

Correct Answer
Marks: 1/1
Which of the following is an assumption for linear regression?

Predictors must be continuous

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 Response must not be continuous

Response is linearly dependent on the estimated parameters.

You Selected
Error terms must not have constant variance
Q No: 6

Incorrect Answer
Marks: 0/1

All large cities are concerned about parking space and pollution due to the number of
private vehicles. A survey found the information provided below. Which of the
predictor causes the maximum change in the 'number of vehicles' (dependent
variable) per unit increase?

Predictor Coefficients

Intercept 100222.6

Gas Price -689.523

Population of city 0.055

Monthly income of riders -1.301

Average parking rates per

152.456
month

Note: All the predictor (independent) variables have been scaled.

Average parking rate

You Selected
Population

Monthly income

Gas price
Correct Option
Q No: 7

Correct Answer
Marks: 1/1

Market price (MP) of a house depends on its area (square feet) and age (years). From
a sample data, the regression equation is determined as

MP = 57.35 + 0.0177 * Area – 0.666 * Age

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 Two houses are on the market: A (area = 1682 sq feet, 20-year-old) and B (area =
1856 sq feet, 22-year-old). Which of the following statements do you agree with?

A is less expensive than B

You Selected
A is more expensive than B

A and B are of equal value

MP (A) = 73.80

MP (B) = 75.5

A is less expensive than B

Q No: 8

Incorrect Answer
Marks: 0/1

EP is regressed on all the predictors available and the regression output is given
below.

coef std err t P>|t|

Intercept 415.1261 9.771 42.486 0

-
T -1.881 0.015 0
126.601

V -0.2562 0.007 -34.801 0

AP 0.0957 0.01 10.056 0

RH -2.9001 0.093 -31.304 0

GT 0.0694 0.043 1.606 0.108

ST -0.0125 0.063 -0.199 0.842

R2 happens to be 0.93 for this model. Based on this information, which conclusions
may be drawn?

1. GT and ST may be removed from the model because p-values are high
(greater than 5%)

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 2. AP needs to be removed from the model because the coefficient is a small
negative quantity
3. If GT and ST are removed from the regression equation, there will be no
change in the adjusted R2 value
4. If exhaust vacuum increases, hourly energy output also increases.

3 and 4

1 and 2
You Selected
1 and 3
Correct Option
2 and 3
Q No: 9

Incorrect Answer
Marks: 0/1

To answer the below question, do the following:

1. Load the dataset ThreeCars.csv

2. Do not scale the data
3. Do not split the data
4. Make a Linear Regression model with 'Price' as the target variable

What is the value of R Squared?

Note: Please do not pre-process the data in any way before fitting the linear
regression model.

0.81

0.78
Correct Option
0.74
You Selected
0.70
Q No: 10

Correct Answer
Marks: 1/1

To answer the below question, do the following:

1. Load the dataset ThreeCars.csv

2. Do not scale the data
3. Do not split the data
4. Make a Linear Regression model with 'Price' as the target variable

What is the value of Price for these input parameters?

Variable Value

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 Age 3
Mileage 43
Porsche 1
Jaguar 0
BMW 0

Note: Please do not pre-process the data in any way before fitting the linear
regression model.

50.190

49.222
You Selected
48.221

50.222

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