Exam 12: Simple Regression Analysis and Correlation

The process of constructing a mathematical model or function that can be used to predict or determine one variable by another variable is called regression analysis.

Alan Nip, market analyst for Clear Sound Mart, is analyzing the relation between heavy metal CD sales and the size of the teenage population.He gathers data from six sales districts.Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variable is teenage population (in 1,000's).Regression analysis of the data yielded the following tables: Alan's sample size is ___.

In the regression equation, y = 75.65 + 0.80x, the intercept is ___.

Consider the following scatter plot and regression line.At x = 17, the residual (error term)is ___.

Louis Tang, a cost accountant at Prime Plastics, Inc.(PPI), is analyzing the manufacturing costs of a moulded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's).Regression analysis of the data yielded the following tables: Louis's regression model is ___.

In regression analysis, R-squared is also called the ___.

The coefficient of determination is the proportion of variability of the dependent variable (y)accounted for or explained by the independent variable (x).

A cost accountant is developing a regression model to predict the total cost of producing a batch of car seats as a linear function of batch size (the number of seats produced in one lot or batch).The slope of the accountant's model is ___.

Alan Nip, market analyst for Clear Sound Mart, is analyzing the relation between heavy metal CD sales and the size of the teenage population.He gathers data from six sales districts.Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variable is teenage population (in 1,000's).Regression analysis of the data yielded the following tables. The numerical value of the correlation coefficient between the CD sales and the size of teenage population is ___.

In the simple regression model, y = 21 − 8x, if the coefficient of determination is 0.81, we can say that the coefficient of correlation between y and x is 0.90.

If there is perfect negative correlation between two sets of numbers, then ___.

In the regression equation, y = 75.65 + 0.80x, the slope is ___.

From the following scatter plot, we can say that between y and x there is ___.

The following data is to be used to construct a regression model: The value of the slope is ___.

A cost accountant is developing a regression model to predict the total cost of producing a batch of car seats as a function of batch size (the number of seats produced in one lot or batch).The dependent variable is ___.