Question 1

Which of the following options is the best explanation of why the least squares method of fitting a regression line is preferred?

Accepted Answer

A)  It is quick and easy 
B)  It allows for individual interpretation 
C)  It can be understood easily 
D)  It is mathematically derived 
A)  It is quick and easy 
B)  It allows for individual interpretation 
C)  It can be understood easily 
D)  It is mathematically derived D

Question 2

A regression line is given by the equation y = 720 - 0.35x. Estimate the value for y when x equals 400.

Accepted Answer

A)  580 
B)  640 
C)  860 
D)  1020 
A)  580 
B)  640 
C)  860 
D)  1020 A

Question 3

Which of the following options is the best description of regression?

Accepted Answer

A)  A mathematical equation describing the spread of values in a set of data 
B)  A mathematical equation testing whether changing one variable affects another 
C)  A mathematical equation describing the relationship between two variables 
D)  A mathematical equation describing the skewness of values in a set of data 
A)  A mathematical equation describing the spread of values in a set of data 
B)  A mathematical equation testing whether changing one variable affects another 
C)  A mathematical equation describing the relationship between two variables 
D)  A mathematical equation describing the skewness of values in a set of data C

Question 4

Which of the following options is NOT a way in which a regression line can be fitted to a set of bivariate data?

Accepted Answer

A)  Inspection 
B)  Reduced means 
C)  Semi-averages 
D)  Least squares 
A)  Inspection 
B)  Reduced means 
C)  Semi-averages 
D)  Least squares

Question 5

Which of the following options is an example of a non-causal relationship?

Accepted Answer

A)  Salesman height and average monthly sales 
B)  Number of customers and revenue 
C)  Daily temperature and number of ice-creams sold 
D)  Income levels and average restaurant spend 
A)  Salesman height and average monthly sales 
B)  Number of customers and revenue 
C)  Daily temperature and number of ice-creams sold 
D)  Income levels and average restaurant spend

Question 6

A taxi-company owner in Kuala Lumpur has six cars of different ages. He records the annual cost of repairs (in Malaysian Ringgit). Using the data below, and the least squares method, work out the gradient (b) of the regression line (round to the nearest whole number).

Accepted Answer

A)  2659 
B)  2682 
C)  2696 
D)  2702 
A)  2659 
B)  2682 
C)  2696 
D)  2702

Question 7

A regression line is constructed using data where the independent variable has values ranging between 20 and 130. What term is used when estimating a value of y when x = 85?

Accepted Answer

A)  Extrapolation 
B)  Estimation 
C)  Interpolation 
D)  Causation 
A)  Extrapolation 
B)  Estimation 
C)  Interpolation 
D)  Causation

Question 8

What name is given to the regression line that allows a manager of a firm in Thailand to estimate the additional revenue generated for every additional 5,000 Thai Baht spent?

Accepted Answer

A)  Output regression line 
B)  x on y regression line 
C)  y on x regression line 
D)  Input regression line 
A)  Output regression line 
B)  x on y regression line 
C)  y on x regression line 
D)  Input regression line

Question 9

Which of these statements about extrapolation is NOT true?

Accepted Answer

A)  The term is used to estimate a value for the dependent variable when the value used for the independent variable lies outside the observed range 
B)  Extrapolation is commonly used to support forecasting or planning for future needs (for example raw materials as production increases) 
C)  As extrapolation is taken from within the range of observed values we can be fairly confident of its accuracy 
D)  Extrapolation must be undertaken with care, particularly when values get further from the observed range 
A)  The term is used to estimate a value for the dependent variable when the value used for the independent variable lies outside the observed range 
B)  Extrapolation is commonly used to support forecasting or planning for future needs (for example raw materials as production increases) 
C)  As extrapolation is taken from within the range of observed values we can be fairly confident of its accuracy 
D)  Extrapolation must be undertaken with care, particularly when values get further from the observed range

Question 10

A marketing officer wants to work out the relationship between the amount of money spent on social media and revenue increases. Which is the dependent variable in this case?

Accepted Answer

A)  Social media spend 
B)  Revenue 
C)  There is no clear dependent variable 
D)  Both are dependent variables 
A)  Social media spend 
B)  Revenue 
C)  There is no clear dependent variable 
D)  Both are dependent variables

Exam 13: Regression Techniques

Which of the following options is the best explanation of why the least squares method of fitting a regression line is preferred?

A regression line is given by the equation y = 720 - 0.35x. Estimate the value for y when x equals 400.

Which of the following options is the best description of regression?

Which of the following options is NOT a way in which a regression line can be fitted to a set of bivariate data?

Which of the following options is an example of a non-causal relationship?

A taxi-company owner in Kuala Lumpur has six cars of different ages. He records the annual cost of repairs (in Malaysian Ringgit). Using the data below, and the least squares method, work out the gradient (b) of the regression line (round to the nearest whole number).

A regression line is constructed using data where the independent variable has values ranging between 20 and 130. What term is used when estimating a value of y when x = 85?

What name is given to the regression line that allows a manager of a firm in Thailand to estimate the additional revenue generated for every additional 5,000 Thai Baht spent?

Which of these statements about extrapolation is NOT true?

A marketing officer wants to work out the relationship between the amount of money spent on social media and revenue increases. Which is the dependent variable in this case?

Introduction to Business Mathematics and Statistics

Sampling and Data Collection

Data and Their Accuracy

Frequency Distributions and Charts

General Charts and Graphs

Arithmetic Mean

Median

Mode and Other Measures of Location

Measures of Dispersion and Skewness

Standard Deviation

Quantiles and the Quartile Deviation

Linear Functions and Graphs

Correlation Techniques

Time Series Model

Time Series Trend

Seasonal Variation and Forecasting

Index Relatives

Composite Index Numbers

Special Published Indices

Interest and Depreciation

Present Value and Investment Appraisal

Annuities

Functions and Graphs

Linear Equations

Quadratic and Cubic Equations

Differentiation and Integration

Cost, Revenue and Profit Functions

Set Theory and Enumeration

Introduction to Probability

Conditional Probability and Expectation

Combinations and Permutations

Binomial and Poisson Distributions

Normal Distribution

Linear Inequalities

Matrices

Inventory Control

Network Planning and Analysis

Filters