Question 1

The residuals represent

Accepted Answer

A)  the difference between the actual Y values and the mean of Y. 
B)  the difference between the actual Y values and the predicted Y values. 
C)  the square root of the slope. 
D)  the predicted value of Y for the average X value. 
A)  the difference between the actual Y values and the mean of Y. 
B)  the difference between the actual Y values and the predicted Y values. 
C)  the square root of the slope. 
D)  the predicted value of Y for the average X value.

Question 2

The least squares method minimizes which of the following?

Accepted Answer

A)  SSR 
B)  SSE 
C)  SST 
D)  All of the above 
A)  SSR 
B)  SSE 
C)  SST 
D)  All of the above

Question 3

SCENARIO 13-7  
-Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to
The S&P 500 index, the appropriate null and alternative hypotheses are, respectively,

Accepted Answer

Question 4

SCENARIO 13-8  
-Referring to Scenario 13-8, what is the predicted value of GPA when ACT = 20?

Accepted Answer

A) 2.61 
B) 2.66 
C) 2.80 
D) 3.12 
A) 2.61 
B) 2.66 
C) 2.80 
D) 3.12

Question 5

SCENARIO 13-4   
Simple Linear Regression 13-13
-Referring to Scenario 13-4, the managers of the brokerage firm wanted to test the hypothesis that
the population slope was equal to 0.The p-value of the test is ________.

Accepted Answer

< 0.01 using the Tab

Question 6

SCENARIO 13-3
The director of cooperative education at a state college wants to examine the effect of cooperative
education job experience on marketability in the work place.She takes a random sample of 4
students.For these 4, she finds out how many times each had a cooperative education job and how
many job offers they received upon graduation.These data are presented in the table below.  
-Referring to Scenario 13-3, the director of cooperative education wanted to test the hypothesis
that the population slope was equal to 0.For a test with a level of significance of 0.05, the null
hypothesis should be rejected if the value of the test statistic is ________.

Accepted Answer

> 4.3027 o

Question 7

SCENARIO 13-1  
-Referring to Scenario 13-1, interpret the estimate of   , the Y-intercept of the line.

Accepted Answer

A)  All companies will be charged at least $2,700 by the bank. 
B)  There is no practical interpretation since a sales revenue of $0 is a nonsensical value. 
C)  About 95% of the observed service charges fall within $2,700 of the least squares line. 
D)  For every $1 million increase in sales revenue, we expect a service charge to decrease $2,700. 
A)  All companies will be charged at least $2,700 by the bank. 
B)  There is no practical interpretation since a sales revenue of $0 is a nonsensical value. 
C)  About 95% of the observed service charges fall within $2,700 of the least squares line. 
D)  For every $1 million increase in sales revenue, we expect a service charge to decrease $2,700.

Question 8

SCENARIO 13-11
A computer software developer would like to use the number of downloads (in thousands)for the trial
version of his new shareware to predict the amount of revenue (in thousands of dollars)he can make
on the full version of the new shareware.Following is the output from a simple linear regression
along with the residual plot and normal probability plot obtained from a data set of 30 different
sharewares that he has developed:     
Simple Linear Regression 13-43  
-True or False: Referring to Scenario 13-11, the normality of error assumption appears to have
been violated.

Accepted Answer

A) True 
 B)False

Question 9

SCENARIO 13-11
A computer software developer would like to use the number of downloads (in thousands)for the trial
version of his new shareware to predict the amount of revenue (in thousands of dollars)he can make
on the full version of the new shareware.Following is the output from a simple linear regression
along with the residual plot and normal probability plot obtained from a data set of 30 different
sharewares that he has developed:     
Simple Linear Regression 13-43  
-Referring to Scenario 13-11, which of the following is the correct interpretation for the slope
Coefficient?

Accepted Answer

A)  For each decrease of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
B)  For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
C)  For each decrease of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands. 
D)  For each increase of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands. 
A)  For each decrease of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
B)  For each increase of 1 thousand downloads, the expected revenue is estimated to increase by $ 3.7297 thousands. 
C)  For each decrease of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands. 
D)  For each increase of 1 thousand dollars in expected revenue, the expected number of downloads is estimated to increase by 3.7297 thousands.

Question 10

SCENARIO 13-7  
-Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to
The S&P 500 index, the measured value of the test statistic is

Accepted Answer

A)  -7.019 
B)  -0.503 
C)  0.072 
D)  0.357 
A)  -7.019 
B)  -0.503 
C)  0.072 
D)  0.357

Question 11

True or False: The Durbin-Watson D statistic is used to check the assumption of normality.

Accepted Answer

A) True 
 B)False

Question 12

In a simple linear regression problem, r and b1

Accepted Answer

A)  may have opposite signs. 
B)  must have the same sign. 
C)  must have opposite signs. 
D)  are equal. 
A)  may have opposite signs. 
B)  must have the same sign. 
C)  must have opposite signs. 
D)  are equal.

Question 13

SCENARIO 13-9  
-Referring to Scenario 13-9, the value of the measured t-test statistic to test whether mean
SALARY depends linearly on HOURS is

Accepted Answer

A)  -4.7134 
B)  -1.8940 
C)  0.9795 
D)  13.3561 
A)  -4.7134 
B)  -1.8940 
C)  0.9795 
D)  13.3561

Question 14

If the correlation coefficient (r)= 1.00, then

Accepted Answer

A)  all the data points must fall exactly on a straight line with a slope that equals 1.00. 
B)  all the data points must fall exactly on a straight line with a negative slope. 
C)  all the data points must fall exactly on a straight line with a positive slope. 
D)  all the data points must fall exactly on a horizontal straight line with a zero slope. 
A)  all the data points must fall exactly on a straight line with a slope that equals 1.00. 
B)  all the data points must fall exactly on a straight line with a negative slope. 
C)  all the data points must fall exactly on a straight line with a positive slope. 
D)  all the data points must fall exactly on a horizontal straight line with a zero slope.

Question 15

Accepted Answer

Question 16

SCENARIO 13-4   
Simple Linear Regression 13-13
-Referring to Scenario 13-4, the managers of the brokerage firm wanted to test the hypothesis that
the population slope was equal to 0.For a test with a level of significance of 0.01, the null
hypothesis should be rejected if the value of the test statistic is ________.

Accepted Answer

> 3.1693 o

Question 17

SCENARIO 13-5
The managing partner of an advertising agency believes that his company's sales are related to the
industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with
the following results:   Durbin-Watson Statistic 1.59
-Referring to Scenario 13-5, the partner wants to test for autocorrelation using the Durbin-Watson
Statistic.Using a level of significance of 0.05, the decision he should make is:

Accepted Answer

A)  there is evidence of autocorrelation. 
B)  the test is unable to make a definite conclusion. 
C)  there is no evidence of autocorrelation. 
D)  there is not enough information to perform the test. 
A)  there is evidence of autocorrelation. 
B)  the test is unable to make a definite conclusion. 
C)  there is no evidence of autocorrelation. 
D)  there is not enough information to perform the test.

Question 18

If the plot of the residuals is fan shaped, which assumption is violated?

Accepted Answer

A)  Normality. 
B)  Homoscedasticity. 
C)  Independence of errors. 
D)  No assumptions are violated, the graph should resemble a fan. 
A)  Normality. 
B)  Homoscedasticity. 
C)  Independence of errors. 
D)  No assumptions are violated, the graph should resemble a fan.

Question 19

SCENARIO 13-2  
-

Accepted Answer

Question 20

SCENARIO 13-5
The managing partner of an advertising agency believes that his company's sales are related to the
industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with
the following results:   Durbin-Watson Statistic 1.59
-

Accepted Answer

The residuals represent

The least squares method minimizes which of the following?

SCENARIO 13-7 -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to The S&P 500 index, the appropriate null and alternative hypotheses are, respectively,

SCENARIO 13-8 -Referring to Scenario 13-8, what is the predicted value of GPA when ACT = 20?

SCENARIO 13-4 Simple Linear Regression 13-13 -Referring to Scenario 13-4, the managers of the brokerage firm wanted to test the hypothesis that the population slope was equal to 0.The p-value of the test is ________.

SCENARIO 13-1 -Referring to Scenario 13-1, interpret the estimate of , the Y-intercept of the line.

SCENARIO 13-7 -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to The S&P 500 index, the measured value of the test statistic is

True or False: The Durbin-Watson D statistic is used to check the assumption of normality.

In a simple linear regression problem, r and b1

SCENARIO 13-9 -Referring to Scenario 13-9, the value of the measured t-test statistic to test whether mean SALARY depends linearly on HOURS is

If the correlation coefficient (r)= 1.00, then

If the plot of the residuals is fan shaped, which assumption is violated?

SCENARIO 13-2 -

SCENARIO 13-5 The managing partner of an advertising agency believes that his company's sales are related to the industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with the following results: Durbin-Watson Statistic 1.59 -

Defining and Collecting Data

Organizing and Visualizing

Numerical Descriptive Measures

Basic Probability

Discrete Probability Distributions

Conthe Tinuonormausl Disdis Tributionstribution and Other

Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square and Nonparametric

Introduction to Multiple

Multiple Regression

Time-Series Forecasting

Business Analytics

A Roadmap for Analyzing Data

Statistical Applications in Quality Management

Decision Making

Filters

Exam 13: Simple Linear Regression

The residuals represent

The least squares method minimizes which of the following?

SCENARIO 13-7 -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to The S&P 500 index, the appropriate null and alternative hypotheses are, respectively,

SCENARIO 13-8 -Referring to Scenario 13-8, what is the predicted value of GPA when ACT = 20?

SCENARIO 13-4 Simple Linear Regression 13-13 -Referring to Scenario 13-4, the managers of the brokerage firm wanted to test the hypothesis that the population slope was equal to 0.The p-value of the test is ________.

SCENARIO 13-1 -Referring to Scenario 13-1, interpret the estimate of , the Y-intercept of the line.

SCENARIO 13-7 -Referring to Scenario 13-7, to test whether the prison stocks portfolio is negatively related to The S&P 500 index, the measured value of the test statistic is

True or False: The Durbin-Watson D statistic is used to check the assumption of normality.

In a simple linear regression problem, r and b1

SCENARIO 13-9 -Referring to Scenario 13-9, the value of the measured t-test statistic to test whether mean SALARY depends linearly on HOURS is

If the correlation coefficient (r)= 1.00, then

If the plot of the residuals is fan shaped, which assumption is violated?

SCENARIO 13-2 -

SCENARIO 13-5 The managing partner of an advertising agency believes that his company's sales are related to the industry sales.He uses Microsoft Excel to analyze the last 4 years of quarterly data with the following results: Durbin-Watson Statistic 1.59 -

Defining and Collecting Data

Organizing and Visualizing

Numerical Descriptive Measures

Basic Probability

Discrete Probability Distributions

Conthe Tinuonormausl Disdis Tributionstribution and Other

Sampling Distributions

Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

Two-Sample Tests

Analysis of Variance

Chi-Square and Nonparametric

Introduction to Multiple

Multiple Regression

Time-Series Forecasting

Business Analytics

A Roadmap for Analyzing Data

Statistical Applications in Quality Management

Decision Making

Filters