1) In a qualitative choice model, the dependent variable only takes qualitative values. T/ F
2)In a logistic regression model, an independent variable X must have binary outcomes. T/F
3)If a dependent variable is modeled in a form of: ln(Pi1−Pi)=α+βXi, where Xi is independent variable. Then this is a typical logistic regression model.
Group of answer choices T/F
4). In a logistic regression model, the parameters are estimated using maximum likelihood method.
T/F
5)In a logistic regression model, the dependent variable can either be a numeric or a categorical variable. T/F
6)In a logistic regression model, an independent variable must be a categorical variable.T/F
7)In a logistic regression model, the coefficients can be estimated using the ordinary least square (OLS) method.T/F
8)One can use a fitted logistic regression model to predict the numeric value of a dependent variable given a set of the values of the independent variables in the model.T/F
9)One can use a fitted logistic regression model to predict the probability/odd of an interest of choice represented by an dependent variable given a set of the values of the independent variables in the model. T/F
10)In a logistic regression model, a coefficient is statistically significant at a 5% significance level if the absolute value of the “z value” of the estimated coefficient is at least 2.0 (T/F)
11)Factor analysis is to find a few underlying variables from a data set that includes a certain number of observed variables.T/F
12)In a factor analysis, the size of a data sample should be larger than the number of the variables in the given data.T/F
13)An exploratory factor analysis focuses on finding the most likely factor structure for the relationships among a set of variables without any pre-established theory. T/F
14)In a factor analysis process, a so-called “Scree Plot” is used to determine an optimal number of factors given a set of data.T/F
15)To obtain the final estimates of the factoring loadings and factor scores in a factor analysis process, one can employ a varimax rotation technique. T/F
16)A confirmatory factor analysis is used
to test whether a factor structure conforms with the
expected one based on a pre-established theory.
Group of answer choices T/F
17)The two main factor analysis techniques are Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis
(CFA). T/F
18)In an exploratory factor analysis, the underlying variables/factors found from the process are unobservable factors that are not directly measured but are essentially hypothetical. These factors are used to represent the observed variables given a set of data.
19)Given a set of data, a factor analysis can be implemented in many software packages such as R, Python, SAS, SPSS, JMP, Matlab, among others.T/F
20)A factor analysis can be applied in many business fields such as marketing, economics, management, finance, and etc.T/F
Sample Solution
