Question 1

What happens to housing starts as interest rates fall?____________

Accepted Answer

The answer of What happens to housing starts as interest...

Question 2

Which value of r indicates a stronger correlation than 0.40?

Accepted Answer

A)  -0.30 
B)  -0.50 
C)  +0.38 
D)  0 
E)  None of these statements are correct 
A)  -0.30 
B)  -0.50 
C)  +0.38 
D)  0 
E)  None of these statements are correct

Question 3

i. The least squares technique minimizes the sum of the squares of the vertical distances between the actual Y values and the predicted values of Y. 
ii. When a regression line has a zero slope, indicating a lack of a relationship, the line is vertical to the x-axis.
Iii) In regression analysis, the predicted value of Y' rarely agrees exactly with the actual Y value, i.e., we expect some prediction error.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 4

The partial megastat output below is regression analysis of the relationship between annual payroll and number of wins in a season for 28 teams in professional sports. The purpose of the analysis is to predict the number of wins when given an annual payroll in $millions. Although technically not a sample, the baseball data below will be treated as a convenience sample of all major league professional sports.   Refer to the printout above. How many degrees of freedom for Residual (Error)?

Accepted Answer

A)  1 
B)  2 
C)  26 
D)  27 
E)  28 
A)  1 
B)  2 
C)  26 
D)  27 
E)  28

Question 5

i. The basic question in testing the significance of rho is to see if there is zero correlation in the population from which the sample was selected.
Ii) A z test is used to test the significance of the coefficient of correlation.
Iii) Perfect correlation means that the scatter diagram will appear as a straight line

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 6

i. Trying to predict weekly sales with a standard error of estimate of $1,955, we would conclude that 68 percent of the predictions would not be off more than $1,955, 95 percent would not be off by more $3,910, and 99.7 percent would not be off by more than $5,865.
Ii) A confidence interval can be determined for the mean value of Y for a given value of X. 
iii. Approximately 95% of the values lie within two standard errors of the regression line.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 7

i. If the value of r is -0.96, what does this indicate about the dependent variable as the independent variable increases?
Ii) What is the value of the correlation coefficient if there is perfect correlation?
Iii) If the dependent variable is measured in dollars, in what units is the standard error of estimate measured?

Accepted Answer

A)  it increases; zero, dollars squared 
B)  it decreases; +/- 1.0, dollars squared 
C)  it increases; 1.0, dollars ($) 
D)  it decreases; +/- 1.0; dollars ($) 
E)  it decreases; zero; dollars 
A)  it increases; zero, dollars squared 
B)  it decreases; +/- 1.0, dollars squared 
C)  it increases; 1.0, dollars ($) 
D)  it decreases; +/- 1.0; dollars ($) 
E)  it decreases; zero; dollars

Question 8

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this believe, the following data was collected:     
What is the slope of the linear equation?

Accepted Answer

A)  -12.201 
B)  12.201 
C)  2.1946 
D)  -2.1946 
E)  None of the choices are correct 
A)  -12.201 
B)  12.201 
C)  2.1946 
D)  -2.1946 
E)  None of the choices are correct

Question 9

The partial megastat output below is regression analysis of the relationship between attendance and number of wins in a season for a sample of 11 teams in professional sports. The purpose of the analysis is to predict annual attendance (000) when given the number of wins.   
Refer to the printout above. The Sum of Squares Regression is:

Accepted Answer

A)  1,866,821 
B)  736,467 
C)  1,130,353 
D)  82.5157 
E)  28.2049 
A)  1,866,821 
B)  736,467 
C)  1,130,353 
D)  82.5157 
E)  28.2049

Question 10

What is the variable used to predict the value of another called?

Accepted Answer

A)  Independent 
B)  Dependent 
C)  Correlation 
D)  Determination 
E)  None of these statements are correct 
A)  Independent 
B)  Dependent 
C)  Correlation 
D)  Determination 
E)  None of these statements are correct

Question 11

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this believe, the following data was collected:     
What is the value of the standard error of estimate?

Accepted Answer

A)  9.3104 
B)  8.778 
C)  8.328 
D)  86.68 
E)  None of the choices are correct 
A)  9.3104 
B)  8.778 
C)  8.328 
D)  86.68 
E)  None of the choices are correct

Question 12

The regression equation is:

Accepted Answer

A)  Y' = 2.179463 - 12.8094 X 
B)  Y' = -12.80894 + 2.179463 
C)  12.8094 X = 2.179463 Y' 
D)  None of the choices are correct 
A)  Y' = 2.179463 - 12.8094 X 
B)  Y' = -12.80894 + 2.179463 
C)  12.8094 X = 2.179463 Y' 
D)  None of the choices are correct

Question 13

i. If we are studying the relationship between high school performance and college performance, and want to predict college performance, high school performance is the independent variable. 
ii. A financial advisor is interested in predicting bond yield based on bond term, i.e., one year, two years, etc. The dependent variable is bond yield.
Iii) The variable used to predict the value of another is called the independent variable.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 14

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected:     
The 95% confidence interval for 30 calls is

Accepted Answer

A)  55.8, 51.5 
B)  51.4, 55.9 
C)  46.7, 60.6 
D)  31.1, 76.2 
E)  None of the choices are correct 
A)  55.8, 51.5 
B)  51.4, 55.9 
C)  46.7, 60.6 
D)  31.1, 76.2 
E)  None of the choices are correct

Question 15

What is the range of values for the coefficient of determination?

Accepted Answer

A)  -1 to +1 inclusive 
B)  -100% to +100% inclusive 
C)  -100% to 0% inclusive 
D)  0% to 100% inclusive 
E)  None of these statements are correct 
A)  -1 to +1 inclusive 
B)  -100% to +100% inclusive 
C)  -100% to 0% inclusive 
D)  0% to 100% inclusive 
E)  None of these statements are correct

Question 16

Which of the following is true about the standard error of estimate?

Accepted Answer

A)  Measure of the accuracy of the prediction 
B)  Based on squared vertical deviations between Y and Y' 
C)  Cannot be negative 
D)  All of these statements are correct 
E)  None of these statements are correct 
A)  Measure of the accuracy of the prediction 
B)  Based on squared vertical deviations between Y and Y' 
C)  Cannot be negative 
D)  All of these statements are correct 
E)  None of these statements are correct

Question 17

Information was collected from employee records to determine whether there is an association between an employee's age and the number or workdays they miss. Partial excel results are
Summarized below from two different samples:    
 Given this information alone, would you decide to continue with the regression analysis for sample #1 or #2 or both?

Accepted Answer

A)  Continue with both samples, because the sample sizes are over 15 
B)  Continue with sample #1 because the multiple r value is larger than that of sample #2 
C)  Continue with sample #2 because the multiple r value is larger than that of sample #1 
D)  Don't continue with either sample, because the standard error values are more than 2 
E)  Don't continue with either sample, because the sample sizes are too small to be of use 
A)  Continue with both samples, because the sample sizes are over 15 
B)  Continue with sample #1 because the multiple r value is larger than that of sample #2 
C)  Continue with sample #2 because the multiple r value is larger than that of sample #1 
D)  Don't continue with either sample, because the standard error values are more than 2 
E)  Don't continue with either sample, because the sample sizes are too small to be of use

Question 18

For what interest rate will the maximum number of housing starts be achieved?____________

Accepted Answer

The answer of For what interest rate will the maximum...

Question 19

i. The technique used to measure the strength of the relationship between two sets of variables using the coefficient of correlation and the coefficient of determination is called regression analysis. 
ii. In order to visualize the form of the regression equation, we can draw a scatter diagram.
Iii) The least squares technique minimizes the sum of the squares of the vertical distances between the actual Y values and the predicted values of Y.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

Question 20

i. The coefficient of determination is the proportion of the total variation in the dependent variable Y that is explained or accounted for by its relationship with the independent variable X.
Ii) The coefficient of determination is found by taking the square root of the coefficient of correlation. 
iii. The standard error of estimate measures the accuracy of our prediction.

Accepted Answer

A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false 
A)  (i), (ii) and (iii) are all correct statements 
B)  (i) and (ii) are correct statements, but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  All statements are false

What happens to housing starts as interest rates fall?____________

Which value of r indicates a stronger correlation than 0.40?

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this believe, the following data was collected: What is the slope of the linear equation?

What is the variable used to predict the value of another called?

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this believe, the following data was collected: What is the value of the standard error of estimate?

The regression equation is:

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected: The 95% confidence interval for 30 calls is

What is the range of values for the coefficient of determination?

Which of the following is true about the standard error of estimate?

For what interest rate will the maximum number of housing starts be achieved?____________

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Multiple Regression and Correlation Analysis

Chi-Square Applications for Nominal Data

Index Numbers

Time Series and Forecasting

An Introduction to Decision Theory

Filters

Exam 12: Linear Regression and Correlation

What happens to housing starts as interest rates fall?____________

Which value of r indicates a stronger correlation than 0.40?

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this believe, the following data was collected: What is the slope of the linear equation?

What is the variable used to predict the value of another called?

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this believe, the following data was collected: What is the value of the standard error of estimate?

The regression equation is:

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected: The 95% confidence interval for 30 calls is

What is the range of values for the coefficient of determination?

Which of the following is true about the standard error of estimate?

For what interest rate will the maximum number of housing starts be achieved?____________

What Is Statistics

Describing Data: Frequency Distributions and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

The Normal Probability Distribution

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of a Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Multiple Regression and Correlation Analysis

Chi-Square Applications for Nominal Data

Index Numbers

Time Series and Forecasting

An Introduction to Decision Theory

Filters