Management > EXAM > FINAL MGT 6203 EXAM QUESTIONS 2020Theory- 20 questions with Answered Explanations (All)

FINAL MGT 6203 EXAM QUESTIONS 2020Theory- 20 questions with Answered Explanations

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Week 1 Questions Q1. If the explained sum of squares is 35 and the total sum of squares is 49, what is the residual sum of squares? A. 10 B. 14 C. 12 D. 18 Solution: B Explanation: Total Sum o... f Squares = Explained Sum of Squares + Residual Sum of Squares SST = SSE + SSR SSR = SST – SSE = 49 – 35 = 14 Week 2 Questions Q2. Consider a regression model predicting the amount someone has spent (on some arbitrary product) based on their salary and age. To improve the model we have created an interaction variable between Salary and Age. Assume salary given in dollars, and age in years. b0 = 500 b1 = 0.35 b2 = 0.12 b3=0.21 AmountSpent = b0 + b1Salary + b2Age + b3SalaryAge How much more will a 30-year old person with a salary of $20,000 spend than a person who is 2 years older and earns $5000 less than him/her? a)17500 b)33249.54 c)26949.76 d)26950.24 Solution: (c) Week2 Lesson 4 DifInAmountSpent = b1 * (Dif in Salary) + b2*(Dif in Age) + b3* (Dif in (Salary*Age)) DifInAmountSpent = 0.35*(5000) +0.12*(-2) + 0.21 * (120,000) = 26949.76 Week 3 Questions Q3 Given the independent variable X and dependent variable Y, we regress Y on log(X) and get the following formula: Y = b1 * log(X) + b0 where b1 and b0 are the estimated coefficient and intercept respectively from OLS regression. How should we interpret it? A. As X increases by 1 unit, Y increases by b1 units B. As X increases by 1%, Y increases by 0.01 b1 units C. As X increases by 1 unit, Y increases by 100( e b1−1 )% D. As X increases by 1%, Y increases by 100( e 0.01b1−1 )% Answer: B As X increases by 1%, log(X) becomes log(X) + 0.01 and y_new = b1 *(log(X) + 0.01) + b0 = y_old + 0.01 b1 Refer to Week 3 TA session notes Week 4 Questions [Show More]

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