In a Multiple Regression Analysis,if the Regression Coefficient of a Dummy

question 117

True/False

In a multiple regression analysis,if the regression coefficient of a dummy variable is significant and has a sample value of 100,then the dummy variable's effect on the dependent variable is: no effect,or an increase of 100.

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Definitions:

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, potentially distorting the model's estimations.

Standard Errors

The standard deviation of the sampling distribution of a statistic, measuring the accuracy with which a sample estimate represents the population parameter.

Parameter Estimates

Statistical values calculated from data that are used to represent certain characteristics of a population.

Level of Significance

A statistical measure that defines how strong the evidence must be to reject the null hypothesis in a hypothesis test.