Question 1

For the following scatterplot,

Accepted Answer

A) +0.35 
B) +0.90 
C) +0.77 
D) -0.89 
E) -1.00 
A) +0.35 
B) +0.90 
C) +0.77 
D) -0.89 
E) -1.00 A

Question 2

A small independent organic food store offers a variety of specialty coffees.To determine whether price has an impact on sales, the managers kept track of how many
Pounds of each variety of coffee were sold last month.Based on the scatterplot shown
Below, which of the following statements is true?

Accepted Answer

A) The quantitative variable condition is satisfied. 
B) The linearity condition is satisfied. 
C) There are no obvious outliers. 
D) All of the above. 
E) None of the above. 
A) The quantitative variable condition is satisfied. 
B) The linearity condition is satisfied. 
C) There are no obvious outliers. 
D) All of the above. 
E) None of the above. D

Question 3

In discussing how its customers use online services, a bank manager noted "there
seems to be a strong correlation between the use of the online bill paying feature and
gender." Comment on this statement.

Accepted Answer

There may be an association between the use of online bill paying and gender, but these
variables are both categorical so they cannot be correlated.

Question 4

A company studying the productivity of its employees on a new information system was interested in determining if the age (X) of data entry operators influenced the number
Of completed entries made per hour (Y).The regression equation is   Suppose the actual completed entries per hour for an operator who is 35 years old was 8.
The residual is

Accepted Answer

A) -1.3 
B) 2.6 
C) -3.5 
D) 1.3 
E) -2.2 
A) -1.3 
B) 2.6 
C) -3.5 
D) 1.3 
E) -2.2

Question 5

A supermarket chain gathers data on the amount they spend on promotional material (e.g., coupons, etc.) and sales revenue generated each quarter.The predictor variable is

Accepted Answer

A) sales revenue. 
B) amount spent on promotional material. 
C) number of coupons offered. 
D) supermarket chains. 
E) none of the above. 
A) sales revenue. 
B) amount spent on promotional material. 
C) number of coupons offered. 
D) supermarket chains. 
E) none of the above.

Question 6

The scatterplot shows monthly sales figures (in units) and number of months of experience for a sample of salespeople.   The correlation between monthly sales and level of experience is most likely

Accepted Answer

A) -.235. 
B) 0. 
C) .180. 
D) -.914. 
E) .914. 
A) -.235. 
B) 0. 
C) .180. 
D) -.914. 
E) .914.

Question 7

A small independent organic food store offers a variety of specialty coffees.To determine whether price has an impact on sales, the managers kept track of how many
Pounds of each variety of coffee were sold last month.   Based on the scatterplot, the linear relationship between number of pounds of coffee sold
Per week and price is

Accepted Answer

A) strong and positive. 
B) strong and negative. 
C) weak and negative. 
D) weak and positive. 
E) nonexistent. 
A) strong and positive. 
B) strong and negative. 
C) weak and negative. 
D) weak and positive. 
E) nonexistent.

Question 8

Data were collected on monthly sales revenues (in $1,000s) and monthly advertising expenditures ($100s) for a sample of drug stores.The regression line relating revenues
(Y) to advertising expenditure (X) is estimated to be   .The predicted
Sales revenue for a month in which $1,000 was spent on advertising is

Accepted Answer

A) $50,000. 
B) $851.70. 
C) $8,951.70. 
D) $41,700. 
E) $90,000. 
A) $50,000. 
B) $851.70. 
C) $8,951.70. 
D) $41,700. 
E) $90,000.

Question 9

Use the following to answer questions 
To determine whether the cash bonus paid by a company is related to annual pay, data
were gathered for 10 account executives at Johnson Financial Group who received cash
bonuses in 2007.The data, scatterplot, and summary statistics are shown below.    
-Estimate the linear regression model that relates the response variable (cash bonus) to
the predictor variable (annual pay).
a.Find the slope of the regression line.
b.Find the intercept of the regression line.
c.Write the equation of the linear model.

Accepted Answer

a..409
b.-16968
c. @#IMG-DLM& .54, which

Question 10

Shown below is a correlation table showing correlation coefficients between stock
price, earnings per share (EPS), and price/earnings (P/E) ratio for a sample of 19 publicly
traded companies.
Correlations: Stock Price, EPS, PE   a.What is the correlation between stock price and EPS? Interpret.
b.What is the correlation between stock price and PE? Interpret.
c.What is the correlation between EPS and PE? Interpret.

Accepted Answer

a..875, positive and

Question 11

Based on the following residual plot, which condition / assumption for linear regression is not satisfied?

Accepted Answer

A) Linearity. 
B) Quantitative Variables. 
C) Equal Spread. 
D) Outlier. 
E) None of the above; all conditions are satisfied. 
A) Linearity. 
B) Quantitative Variables. 
C) Equal Spread. 
D) Outlier. 
E) None of the above; all conditions are satisfied.

Question 12

Linear regression was used to describe the trend in world population over time. Below is a plot of the residuals versus predicted values.What does the plot of residuals
Suggest?

Accepted Answer

A) An outlier is present in the data set. 
B) The linearity condition is not satisfied. 
C) A high leverage point is present in the data set. 
D) The data are not normal. 
E) The equal spread condition is not satisfied. 
A) An outlier is present in the data set. 
B) The linearity condition is not satisfied. 
C) A high leverage point is present in the data set. 
D) The data are not normal. 
E) The equal spread condition is not satisfied.

Question 13

Use the following to answer questions 
To determine whether the cash bonus paid by a company is related to annual pay, data
were gathered for 10 account executives at Johnson Financial Group who received cash
bonuses in 2007.The data, scatterplot, and summary statistics are shown below.    
-Using the estimated regression equation,
a.Estimate the cash bonus for an executive at Johnson Financial earning $82, 613 a year.
b.What is the residual for this estimate?

Accepted Answer

The answer of Use the following to answer questions 
To...

Question 14

A consumer research group examining the relationship between the price of meat (per pound) and fat content (in grams) gathered data that produced the following scatterplot.   If the point in the lower left hand corner (2 grams of fat; $3.00 per pound) is removed, the
Correlation would most likely

Accepted Answer

A) remain the same. 
B) become positive. 
C) become weaker negative. 
D) become stronger negative. 
E) become zero. 
A) remain the same. 
B) become positive. 
C) become weaker negative. 
D) become stronger negative. 
E) become zero.

Question 15

A company studying the productivity of their employees on a new information system was interested in determining if the age (X) of data entry operators influenced the number
Of completed entries made per hour (Y).The regression equation is   If   =2.61, then the correlation coefficient between age and productivity is

Accepted Answer

A) .779 
B) -.236 
C) .575 
D) -.929 
E) -.779 
A) .779 
B) -.236 
C) .575 
D) -.929 
E) -.779

Question 16

For each of the following scenarios indicate which is the predictor variable and which
is the response variable.
a.A study examined consumption levels of oil and carbon dioxide emissions for a sample
of counties.
b.Data were collected on job performance rating and hours of training for a sample of
employees at a telecommunications repair facility.
c.Salary data as well as years of managerial experience were collected for a sample of
executives in the high tech industry.

Accepted Answer

a.Oil consumption is the predictor varia

Question 17

Suppose the correlation, r, between two variables x and y is -0.44.What percentage of the variability in y cannot be explained by x?

Accepted Answer

A) 19% 
B) 44% 
C) 81% 
D) 88% 
E) 12% 
A) 19% 
B) 44% 
C) 81% 
D) 88% 
E) 12%

Question 18

Use the following to answer questions 
To determine whether the cash bonus paid by a company is related to annual pay, data
were gathered for 10 account executives at Johnson Financial Group who received cash
bonuses in 2007.The data, scatterplot, and summary statistics are shown below.    
-Comment on whether each of the following conditions for correlation / linear
regression is met.
a.Quantitative variable condition.
b.Linearity condition.
c.Outlier condition.

Accepted Answer

a.Yes, both variable

Question 19

A study examined consumption levels of oil and carbon dioxide emissions for sample of counties.The response variable in this study is

Accepted Answer

A) oil. 
B) oil consumption. 
C) carbon dioxide emissions. 
D) countries. 
E) none of the above. 
A) oil. 
B) oil consumption. 
C) carbon dioxide emissions. 
D) countries. 
E) none of the above.

Question 20

The following scatterplot shows monthly sales figures (in units) and number of
months of experience on the job for a sample of 19 salespeople.   a.Describe the association between monthly sales and level of experience.
b.Do these data satisfy the conditions for computing a correlation coefficient? Explain.
c.Estimate the correlation.

Accepted Answer

a.Positive and strong.
b.Yes: variables

For the following scatterplot,

A small independent organic food store offers a variety of specialty coffees.To determine whether price has an impact on sales, the managers kept track of how many Pounds of each variety of coffee were sold last month.Based on the scatterplot shown Below, which of the following statements is true?

In discussing how its customers use online services, a bank manager noted "there seems to be a strong correlation between the use of the online bill paying feature and gender." Comment on this statement.

A supermarket chain gathers data on the amount they spend on promotional material (e.g., coupons, etc.) and sales revenue generated each quarter.The predictor variable is

The scatterplot shows monthly sales figures (in units) and number of months of experience for a sample of salespeople. The correlation between monthly sales and level of experience is most likely

Based on the following residual plot, which condition / assumption for linear regression is not satisfied?

Linear regression was used to describe the trend in world population over time. Below is a plot of the residuals versus predicted values.What does the plot of residuals Suggest?

A consumer research group examining the relationship between the price of meat (per pound) and fat content (in grams) gathered data that produced the following scatterplot. If the point in the lower left hand corner (2 grams of fat; $3.00 per pound) is removed, the Correlation would most likely

Suppose the correlation, r, between two variables x and y is -0.44.What percentage of the variability in y cannot be explained by x?

A study examined consumption levels of oil and carbon dioxide emissions for sample of counties.The response variable in this study is

Data

Surveys and Sampling Multiple Choice

Displaying and Describing Categorical Data

Displaying and Describing Quantitative Data

Randomness and Probability

Random Variables and Probability Models

Sampling Distributions and Confidence Intervals for Proportions

Testing Hypotheses About Proportions

Confidence Intervals and Hypothesis

Comparing Two Groups

Inference for Counts: Chi-Square

Inference for Regression

Multiple Regression

Introduction to Data Mining

Filters

Exam 6: Correlation and Linear Regression

For the following scatterplot,

A small independent organic food store offers a variety of specialty coffees.To determine whether price has an impact on sales, the managers kept track of how many Pounds of each variety of coffee were sold last month.Based on the scatterplot shown Below, which of the following statements is true?

In discussing how its customers use online services, a bank manager noted "there seems to be a strong correlation between the use of the online bill paying feature and gender." Comment on this statement.

A supermarket chain gathers data on the amount they spend on promotional material (e.g., coupons, etc.) and sales revenue generated each quarter.The predictor variable is

The scatterplot shows monthly sales figures (in units) and number of months of experience for a sample of salespeople. The correlation between monthly sales and level of experience is most likely

Based on the following residual plot, which condition / assumption for linear regression is not satisfied?

Linear regression was used to describe the trend in world population over time. Below is a plot of the residuals versus predicted values.What does the plot of residuals Suggest?

A consumer research group examining the relationship between the price of meat (per pound) and fat content (in grams) gathered data that produced the following scatterplot. If the point in the lower left hand corner (2 grams of fat; $3.00 per pound) is removed, the Correlation would most likely

Suppose the correlation, r, between two variables x and y is -0.44.What percentage of the variability in y cannot be explained by x?

A study examined consumption levels of oil and carbon dioxide emissions for sample of counties.The response variable in this study is

Data

Surveys and Sampling Multiple Choice

Displaying and Describing Categorical Data

Displaying and Describing Quantitative Data

Randomness and Probability

Random Variables and Probability Models

Sampling Distributions and Confidence Intervals for Proportions

Testing Hypotheses About Proportions

Confidence Intervals and Hypothesis

Comparing Two Groups

Inference for Counts: Chi-Square

Inference for Regression

Multiple Regression

Introduction to Data Mining

Filters