Dummy Variables

Multiple Regression Review

1) Please explain why the adjusted R Square is less than the Unadjusted R Square.

2) Why do coefficient values change when a new variable is added to a regression? Please explain.

3) Should you use raw coefficients or betas to determine which variable is most important? Please explain.

Look at Table 2 in the Bohte article (p.95)

1) What is the dependent variable for the regression?

2) How does the model fit? Please report the Adjusted R Square and interpret it.

3) Bohte uses a single p value level to determine statistical significance. What is the p value threshold he uses? (i.e. p<?)

4) Do you think it would've been better to include other p value thresholds as well? Please explain.

5) According to Table 2, which variable(s) ARE NOT statistically significant?

6) According to the table, which variable is MOST important? Please explain how you reached this conclusion.