Question 1

If the correlation between two variables is close to one, the association is

Accepted Answer

A)  strong. 
B)  moderate. 
C)  weak. 
D)  none. 
A)  strong. 
B)  moderate. 
C)  weak. 
D)  none.

Question 2

i. A t test is used to test the significance of the coefficient of correlation. 
ii. When testing the strength of the relationship between two variables, the alternate hypothesis is: H0: ? $\neq$ 0.
Iii) Suppose a sample of 15 homes recently sold in your area is obtained. The correlation between the area of the home, in square feet, and the selling price is 0.40. We want to test the hypothesis that the correlation in the population is zero versus the alternate that it is greater than zero. You determine that the rejection region should fall in the lower tail if this is a one-tailed test and we use a 0.01 significance level.

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 3

If all the plots on a scatter diagram lie on a straight line, what is the standard error of estimate?

Accepted Answer

A)  -1 
B)  +1 
C)  0 
D)  Infinity 
E)  None of these statements are correct 
A)  -1 
B)  +1 
C)  0 
D)  Infinity 
E)  None of these statements are correct

Question 4

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 dependent variable?

Accepted Answer

A)  Salesperson 
B)  Number of contacts 
C)  Amount of sales 
D)  All the choices are correct 
E)  None of the choices are correct 
A)  Salesperson 
B)  Number of contacts 
C)  Amount of sales 
D)  All the choices are correct 
E)  None of the choices are correct

Question 5

The regression analysis can be summarized as follows:

Accepted Answer

A)  No significant relationship between the variables 
B)  A significant negative relationship exists between the variables 
C)  A significant positive relationship exists between the variables 
D)  For every unit increase in X, Y decreases by 12.8094 
A)  No significant relationship between the variables 
B)  A significant negative relationship exists between the variables 
C)  A significant positive relationship exists between the variables 
D)  For every unit increase in X, Y decreases by 12.8094

Question 6

We have collected price per share and dividend information from a sample of 30 companies. Using the Megastat printout, determine the regression equation that predicts the dividend from the stock's selling price.

Accepted Answer

A)  Y = 0.27 +3.68x 
B)  Y = 0.27x + 3.68 
C)  Y = -3.68 + 0.27x 
D)  Y = -0.27x - 3.68 
E)  None of the choices are correct. 
A)  Y = 0.27 +3.68x 
B)  Y = 0.27x + 3.68 
C)  Y = -3.68 + 0.27x 
D)  Y = -0.27x - 3.68 
E)  None of the choices are correct.

Question 7

Use the scatter diagrams to verify which statements are correct:
 
Chart A

Chart B

Chart C

Accepted Answer

A)  The variables in Chart A have a positive correlation 
B)  The variables in Chart B have a positive correlation 
C)  The variables in Chart B have a negative correlation 
D)  The variables in Chart A have a stronger correlation than the variables in Chart B 
E)  B & D are correct 
A)  The variables in Chart A have a positive correlation 
B)  The variables in Chart B have a positive correlation 
C)  The variables in Chart B have a negative correlation 
D)  The variables in Chart A have a stronger correlation than the variables in Chart B 
E)  B & D are correct

Question 8

Given the following five points: (-2,0), (-1,0), (0,1), (1,1), and (2,3). What is the slope of the line?

Accepted Answer

A)  0.0 
B)  0.5 
C)  0.6 
D)  0.7 
E)  None of the choices are correct 
A)  0.0 
B)  0.5 
C)  0.6 
D)  0.7 
E)  None of the choices are correct

Question 9

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Excel printout is shown below.   
The slope in this instance indicates:

Accepted Answer

A)  For each additional contact made, the salesperson can anticipate an additional $1983 in sales 
B)  For each additional contact made, the salesperson can anticipate an additional $1.98 in sales 
C)  For each additional contact made, the salesperson can anticipate an additional $7,554 in sales 
D)  For each additional contact made, the salesperson can anticipate a drop of $7,554 in sales 
E)  For each additional sale made, the salesperson can anticipate an additional 2 contacts are needed 
A)  For each additional contact made, the salesperson can anticipate an additional $1983 in sales 
B)  For each additional contact made, the salesperson can anticipate an additional $1.98 in sales 
C)  For each additional contact made, the salesperson can anticipate an additional $7,554 in sales 
D)  For each additional contact made, the salesperson can anticipate a drop of $7,554 in sales 
E)  For each additional sale made, the salesperson can anticipate an additional 2 contacts are needed

Question 10

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 calculated F value is

Accepted Answer

A)  156.37. 
B)  02.64. 
C)  86.68. 
D)  9.31. 
E)  none of the choices are correct 
A)  156.37. 
B)  02.64. 
C)  86.68. 
D)  9.31. 
E)  none of the choices are correct

Question 11

The difference between formulas for constructing a confidence interval and a prediction interval is

Accepted Answer

A)  the prediction interval is the square root of the confidence interval. 
B)  the addition of "1" to the quantity under the radical sign. 
C)  the prediction interval uses r2 and the confidence interval uses r. 
D)  no difference. 
E)  None of these statements are correct. 
A)  the prediction interval is the square root of the confidence interval. 
B)  the addition of "1" to the quantity under the radical sign. 
C)  the prediction interval uses r2 and the confidence interval uses r. 
D)  no difference. 
E)  None of these statements are correct.

Question 12

The correlation between two variables is -0.63 for a sample of 20 observations. What is the computed value of the test statistic?

Accepted Answer

A)  3.442 
B)  -0.63 
C)  -3.442 
D)  None of the above 
A)  3.442 
B)  -0.63 
C)  -3.442 
D)  None of the above

Question 13

i. In order to visualize the form of the regression equation, we can draw a scatter diagram. 
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 14

Suppose the least squares regression equation is Y' = 1202 + 1,133X. When X = 3, what does Y' equal?

Accepted Answer

A)  5,734 
B)  8,000 
C)  4,601 
D)  4,050 
E)  None of these statements are correct 
A)  5,734 
B)  8,000 
C)  4,601 
D)  4,050 
E)  None of these statements are correct

Question 15

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. Excel results are summarized
Below:  
 From this printout you determine:

Accepted Answer

A)  The y-intercept of 23 makes no sense 
B)  For each additional year of age, we can expect the number of days of absence to increase by 0.45 days 
C)  For each additional year of age, we can expect the number of days of absence to decrease by 0.45 days 
D)  A & B are true 
E)  A & C are true 
A)  The y-intercept of 23 makes no sense 
B)  For each additional year of age, we can expect the number of days of absence to increase by 0.45 days 
C)  For each additional year of age, we can expect the number of days of absence to decrease by 0.45 days 
D)  A & B are true 
E)  A & C are true

Question 16

Which value of r indicates a stronger correlation than 0.55?

Accepted Answer

A)  -0.30 
B)  -0.50 
C)  0.30 
D)  All of the statements are correct 
E)  None of these statements are correct 
A)  -0.30 
B)  -0.50 
C)  0.30 
D)  All of the statements are correct 
E)  None of these statements are correct

Question 17

The correlation between two variables is -0.63 for a sample of 20 observations. Which of the following is a correct conclusion based on the data given? Use the .05 significance level.

Accepted Answer

A)  Reject H0. There is a negative association between the variables. 
B)  Do not reject H0. There is a negative association between the variables. 
C)  Reject H0. There is a positive association between the variables. 
D)  None of the above. 
A)  Reject H0. There is a negative association between the variables. 
B)  Do not reject H0. There is a negative association between the variables. 
C)  Reject H0. There is a positive association between the variables. 
D)  None of the above.

Question 18

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. The critical value of t, for testing the slope of the regression line is:

Accepted Answer

A)  2.042 
B)  1.706 
C)  1.314 
D)  1.703 
E)  1.061 
A)  2.042 
B)  1.706 
C)  1.314 
D)  1.703 
E)  1.061

Question 19

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 SS total is:

Accepted Answer

A)  14,249. 
B)  13,555. 
C)  693.48. 
D)  156.37. 
E)  None of the choices are correct 
A)  14,249. 
B)  13,555. 
C)  693.48. 
D)  156.37. 
E)  None of the choices are correct

Question 20

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:   Given this information alone, would you decide to continue with the regression analysis?

Accepted Answer

A)  Yes, because the information is based on a significant size sample. 
B)  Yes, because the multiple r value is large 
C)  No, because the multiple r value is small 
D)  No, because the standard error value is more than 5 
E)  Yes, because the standard error value is more than 5 
A)  Yes, because the information is based on a significant size sample. 
B)  Yes, because the multiple r value is large 
C)  No, because the multiple r value is small 
D)  No, because the standard error value is more than 5 
E)  Yes, because the standard error value is more than 5

If the correlation between two variables is close to one, the association is

If all the plots on a scatter diagram lie on a straight line, what is the standard error of estimate?

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 dependent variable?

The regression analysis can be summarized as follows:

We have collected price per share and dividend information from a sample of 30 companies. Using the Megastat printout, determine the regression equation that predicts the dividend from the stock's selling price.

Use the scatter diagrams to verify which statements are correct: Chart A Chart B Chart C

Given the following five points: (-2,0), (-1,0), (0,1), (1,1), and (2,3). What is the slope of the line?

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Excel printout is shown below. The slope in this instance indicates:

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 calculated F value is

The difference between formulas for constructing a confidence interval and a prediction interval is

The correlation between two variables is -0.63 for a sample of 20 observations. What is the computed value of the test statistic?

Suppose the least squares regression equation is Y' = 1202 + 1,133X. When X = 3, what does Y' equal?

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. Excel results are summarized Below: From this printout you determine:

Which value of r indicates a stronger correlation than 0.55?

The correlation between two variables is -0.63 for a sample of 20 observations. Which of the following is a correct conclusion based on the data given? Use the .05 significance level.

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 SS total is:

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: Given this information alone, would you decide to continue with the regression analysis?

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

If the correlation between two variables is close to one, the association is

If all the plots on a scatter diagram lie on a straight line, what is the standard error of estimate?

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 dependent variable?

The regression analysis can be summarized as follows:

We have collected price per share and dividend information from a sample of 30 companies. Using the Megastat printout, determine the regression equation that predicts the dividend from the stock's selling price.

Use the scatter diagrams to verify which statements are correct: Chart A Chart B Chart C

Given the following five points: (-2,0), (-1,0), (0,1), (1,1), and (2,3). What is the slope of the line?

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Excel printout is shown below. The slope in this instance indicates:

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 calculated F value is

The difference between formulas for constructing a confidence interval and a prediction interval is

The correlation between two variables is -0.63 for a sample of 20 observations. What is the computed value of the test statistic?

Suppose the least squares regression equation is Y' = 1202 + 1,133X. When X = 3, what does Y' equal?

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. Excel results are summarized Below: From this printout you determine:

Which value of r indicates a stronger correlation than 0.55?

The correlation between two variables is -0.63 for a sample of 20 observations. Which of the following is a correct conclusion based on the data given? Use the .05 significance level.

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 SS total is:

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: Given this information alone, would you decide to continue with the regression analysis?

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