Question 17 options:   Is an important means of determining whether certain modeling assumptions are reasonable.   May involve a series of graphical displays.   Can help identify whether certain data points have influence or leverage.   All of the above statements are true.   None of the above statements is true.

Training Dept. of Nimrod Inc wants to develop a regression-based compensation model (compensation in $ per year, Comp) for its mid-level managers to encourage performance, loyalty, and continuing education based on three variables. ▪ Business unit-profitability (Profit per year in $). ▪ Working experiences in Nimrod Inc (Years). ▪ Whether or not a manager has a graduate degree (Grads). If a manager has a graduate degree equals 1, 0 otherwise. Table Attached Question: Which explanatory variables and interaction terms are significant and not significant at  alpha = 5%? Explain your answer briefly.

The goal of the simple regression analysis is to understand[Mark one answer]:_______ the nature of the association between the two numerical variables X and Y. _______ the nature of the association between the two categorical variables X and Y. _______ the nature of the linear association between the two numerical variables X and Y. _______ the nature of the linear association between the two categorical variables X and Y.