Question 13

Refer to the REG procedure output:
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The Intercept estimate is interpreted as:

Correct Answer:C

Question 14

The standard form of a linear regression model is:
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Which statement best summarizes the assumptions placed on the errors?

Correct Answer:D

Question 15

An analyst fits a logistic regression model to predict whether or not a client will default on a loan. One of the predictors in the model is agent, and each agent serves 15-20 clients each. The model fails to converge. The analyst prints the summarized data, showing the number of defaulted loans per agent. See the partial output below:
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What is the most likely reason that the model fails to converge?

Correct Answer:A

Question 16

Refer to the REG procedure output:
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An analyst has selected this model as a champion because it shows better model fit than a competing model with more predictors.
Which statistic justifies this rationale?

Correct Answer:C

Question 17

Refer to the exhibit:
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An analyst examined logistic regression models for predicting whether a customer would make a purchase. The ROC curve displayed summarizes the models. Using the selected model and the analyst's decision rule, 25% of the customers who did not make a purchase are incorrectly classified as purchasers.
What can be concluded from the graph?

Correct Answer:C

Question 18

Screening for non-linearity in binary logistic regression can be achieved by visualizing:

Correct Answer:B

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