Exam 18: Simple Linear Regression and Correlation

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A medical statistician wanted to examine the relationship between the amount of sunshine (x) and incidence of skin cancer (y). As an experiment he found the number of skin cancers detected per 100 000 of population and the average daily sunshine in eight country towns around NSW. These data are shown below. Average daily sunshine (hours) 5 7 6 7 8 6 4 3 Skin cancer per 100000 7 11 9 12 15 10 7 5 Calculate the coefficient of determination and interpret it.

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At a recent music concert, a survey was conducted that asked a random sample of 20 people their age and how many concerts they have attended since the beginning of the year. The following data were collected. Age 62 57 40 49 67 54 43 65 54 41 Number of concerts 6 5 4 3 5 5 2 6 3 1 Age 44 48 55 60 59 63 69 40 38 52 Number of Concerts 3 2 4 5 4 5 4 2 1 3  At a recent music concert, a survey was conducted that asked a random sample of 20 people their age and how many concerts they have attended since the beginning of the year. The following data were collected.  \begin{array}{l} \begin{array} { | l | c | c | c | c | c | c | c | c | c | c | }  \hline \text { Age } & 62 & 57 & 40 & 49 & 67 & 54 & 43 & 65 & 54 & 41 \\ \hline \text { Number of concerts } & 6 & 5 & 4 & 3 & 5 & 5 & 2 & 6 & 3 & 1 \\ \hline \end{array}\\\\ \begin{array} { | l | c | c | c | c | c | c | c | c | c | c | }  \hline \text { Age } & 44 & 48 & 55 & 60 & 59 & 63 & 69 & 40 & 38 & 52 \\ \hline \text { Number of Concerts } & 3 & 2 & 4 & 5 & 4 & 5 & 4 & 2 & 1 & 3 \\ \hline \end{array} \end{array}    a. Predict with 95% confidence the number of concerts attended by a 45-year-old individual. b. Predict with 95% confidence the average number of concerts attended by all 45-year-old individuals. a. Predict with 95% confidence the number of concerts attended by a 45-year-old individual. b. Predict with 95% confidence the average number of concerts attended by all 45-year-old individuals.

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The quality of oil is measured in API gravity degrees - the higher the degrees API, the higher the quality. The table shown below is produced by an expert in the field, who believes that there is a relationship between quality and price per barrel. Oil degrees API Price per barrel (in \ ) 27.0 12.02 28.5 12.04 30.8 12.32 31.3 12.27 31.9 12.49 34.5 12.70 34.0 12.80 34.7 13.00 37.0 13.00 41.0 13.17 41.0 13.19 38.8 13.22 39.3 13.27 A partial Minitab output follows. Descriptive Statistics Variable Mean StDev SE Mean Degrees 13 34.60 4.613 1.280 Frice 13 12.730 0.457 0.127 Covariances Degrees Price Degrees 21.281667 Price 2.026750 0.208833 Regression Analysis Predictor Coef StDev Constant 9.4349 0.2867 32.91 0.000 Degrees 0.095235 0.008220 11.59 0.000 S = 0.1314 R-Sq = 92.46% R-Sq(adj) = 91.7% Analysis of Variance Source DF SS MS F P Regression 1 2.3162 2.3162 134.24 0.000 Residual Error 11 0.1898 0.0173 Total 12 2.5060 Conduct a test of the population slope to determine at the 5% significance level whether a linear relationship exists between the quality of oil and price per barrel.

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If the coefficient of correlation between x and y is close to −1.0, which of the following statements is correct?

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The residual rir _ { i } is defined as the difference between the actual value yiy _ { i } and the estimated value  The residual  r _ { i }  is defined as the difference between the actual value  y _ { i }  and the estimated value    . .

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A professor of economics wants to study the relationship between income y (in $1000s) and education x (in years). A random sample of eight individuals is taken and the results are shown below. Education 16 11 15 8 12 10 13 14 Income 58 40 55 35 43 41 52 49 Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a linear relationship exists between years of education and income.

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If the coefficient of correlation is 0.80, the percentage of the variation in y that is explained by the variation in x is:

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The manager of a fast food restaurant wants to determine how sales in a given week are related to the number of discount vouchers (#) printed in the local newspaper during the week. The number of vouchers and sales ($000s) from 10 randomly selected weeks is given below with Excel regression output. Number of vo uchers Sales 4 12.8 7 15.4 5 13.9 3 11.2 19 18.7 10 17.9 8 16.8 6 15.9 3 11.5 5 13.9  The manager of a fast food restaurant wants to determine how sales in a given week are related to the number of discount vouchers (#) printed in the local newspaper during the week. The number of vouchers and sales ($000s) from 10 randomly selected weeks is given below with Excel regression output.  \begin{array} { | c | c | }  \hline \text { Number of vo uchers } & \text { Sales } \\ \hline 4 & 12.8 \\ \hline 7 & 15.4 \\ \hline 5 & 13.9 \\ \hline 3 & 11.2 \\ \hline 19 & 18.7 \\ \hline 10 & 17.9 \\ \hline 8 & 16.8 \\ \hline 6 & 15.9 \\ \hline 3 & 11.5 \\ \hline 5 & 13.9 \\ \hline \end{array}    Test the significance of the slope against a suitable alternative, at the 5% level of significance. Justify your choice of the direction in your alternative hypothesis. Test the significance of the slope against a suitable alternative, at the 5% level of significance. Justify your choice of the direction in your alternative hypothesis.

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Which of the following statements best describes the slope in the simple linear regression model?

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The dean of a faculty of business in Victoria believes that students who do well in 'soft' courses like organisational behaviour do poorly in 'hard' courses like business statistics. In order to test his belief, he takes a random sample of 10 students and records their test grades in organisational behaviour and statistics. The results are shown below. Do these data provide sufficient evidence at the 5% significance level to support the dean's claim? Student Organisational Behaviour Grade Business Statistics Grade 1 2 3 4 5 6 7 8 9 10

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If all the points in a scatter diagram lie on the least squares regression line, then the coefficient of correlation must be +1.0.

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A statistician investigating the relationship between the amount of precipitation (in inches) and the number of car accidents gathered data for 10 randomly selected days. The results are presented below. Day Precipitation Number of accidents 1 0.05 5 2 0.12 6 3 0.05 2 4 0.08 4 5 0.10 8 6 0.35 14 7 0.15 7 8 0.30 13 9 0.10 7 10 0.20 10 Determine the coefficient of determination and discuss what its value tells you about the two variables.

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In a regression problem, if the coefficient of determination is 0.95, this means that:

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The value of the sum of squares for regression, SSR, can never be equal to the value of total sum of squares, SST.

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Pop-up coffee vendors have been popular in the city of Adelaide in 2013. A vendor is interested in knowing how temperature (in degrees Celsius) impacts daily hot coffee sales revenue (in $00's). A random sample of 6 days was taken, with the daily hot coffee sales revenue and the corresponding temperature of that day noted. Coffee sales revenue Temperature 6.50 25 10.00 17 5.50 30 4.50 35 3.50 40 28.00 9 Calculate and interpret a 95% confidence interval for the population slope.

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An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education. The results are as follows. Contestant Years of education Winnings 1 11 750 2 15 400 3 12 600 4 16 350 5 11 800 6 16 300 7 13 650 8 14 400 Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a linear relationship exists between TV game show contestants' years of education and their winnings.

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If the sum of squared residuals is zero, then the:

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Except for the values r = -1, 0 and 1, we cannot be specific in our interpretation of the coefficient of correlation r. However, when we square it, we produce a more meaningful statistic.

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In regression analysis, the coefficient of determination, R2R ^ { 2 } , measures the amount of variation in y that is:

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A regression analysis between sales (in $1000) and advertising (in $) yielded the least squares line A regression analysis between sales (in $1000) and advertising (in $) yielded the least squares line    = 80 000 + 5x. This implies that an: = 80 000 + 5x. This implies that an:

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