Exam 15: Simple Linear Regression and Correlation

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In the first-order linear regression model, the population parameters of the y-intercept and the slope are:

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A medical statistician wanted to examine the relationship between the amount of sunshine (x) and incidence of skin cancer (y). As an experiment he found the number of skin cancers detected per 100 000 of population and the average daily sunshine in eight country towns around NSW. These data are shown below. Average daily sunshine (hours) 5 7 6 7 8 6 4 3 Skin cancer per 100000 7 11 9 12 15 10 7 5 Draw a scatter diagram of the data and plot the least squares regression line on it.

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A financier whose specialty is investing in movie productions has observed that, in general, movies with 'big-name' stars seem to generate more revenue than those movies whose stars are less well known. To examine his belief, he records the gross revenue and the payment (in $ million) given to the two highest-paid performers in the movie for 10 recently released movies. Movie Cost of two highest- paid performers (\ ) Gross revenue (\ ) 1 5.3 48 2 7.2 65 3 1.3 18 4 1.8 20 5 3.5 31 6 2.6 26 7 8.0 73 8 2.4 23 9 4.5 39 10 6.7 58 a. Determine the least squares regression line. b. Interpret the value of the slope of the regression line. c. Determine the standard error of estimate, and describe what this statistic tells you about the regression line.

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Which of the following best describes the relationship of the least squares regression line: Estimated y = 2 - x?

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The Pearson coefficient of correlation r equals 1 when there is/are no:

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In simple linear regression, which of the following statements indicates no linear relationship between the variables x and y?

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The symbol for the population coefficient of correlation is:

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In order to estimate with 95% confidence a particular value of yy for a given value of xx in a simple linear regression problem, a random sample of 20 observations is taken. The appropriate table value that would be used is 2.101.

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The standardised residual is defined as:

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An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education. The results are as follows. Contestant Years of education Winnings 1 11 750 2 15 400 3 12 600 4 16 350 5 11 800 6 16 300 7 13 650 8 14 400 Use the regression equation to determine the predicted values of y.

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The editor of a major academic book publisher claims that a large part of the cost of books is the cost of paper. This implies that larger books will cost more money. As an experiment to analyse the claim, a university student visits the bookstore and records the number of pages and the selling price of 12 randomly selected books. These data are listed below. Book Number of pages Selling price (\ ) 1 844 55 2 727 50 3 360 35 4 915 60 5 295 30 6 706 50 7 410 40 8 905 53 9 1058 65 10 865 54 11 677 42 12 912 58 Draw a scatter diagram of the data and plot the least squares regression line on it.

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The regression line y^\hat { y } = 2 + 3x has been fitted to the data points (4,11), (2,7), and (1,5). The residual sum of squares will be 10.0.

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The quality of oil is measured in API gravity degrees - the higher the degrees API, the higher the quality. The table shown below is produced by an expert in the field, who believes that there is a relationship between quality and price per barrel. Oil degrees API Price per barrel (in \ ) 27.0 12.02 28.5 12.04 30.8 12.32 31.3 12.27 31.9 12.49 34.5 12.70 34.0 12.80 34.7 13.00 37.0 13.00 41.0 13.17 41.0 13.19 38.8 13.22 39.3 13.27 A partial computer output follows. Descriptive Statistics Variable Mean StDev SE Mean Degrees 13 34.60 4.613 1.280 Frice 13 12.730 0.457 0.127 Covariances Degrees Price Degrees 21.281667 Price 2.026750 0.208833 Regression Analysis Fredictor Coef StDev Constant 9.4349 0.2867 32.91 0.000 Degrees 0.095235 0.008220 11.59 0.000 se = 0.1314 R2 = 92.46% R2(adjusted) = 91.7% Analysis of Variance Source DF SS MS Regression 1 2.3162 2.3162 134.24 0.000 Residual Error 11 0.1898 0.0173 Total 12 2.5060 a. Determine the standard error of estimate and describe what this statistic tells you. b. Determine the coefficient of determination and discuss what its value tells you about the two variables. c. Calculate the Pearson correlation coefficient. What sign does it have? Why?

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Consider the following data values of variables x and y. x 3 5 7 9 11 14 y 7 10 17 20 27 35 Calculate the coefficient of determination, and describe what this statistic tells you about the relationship between the two variables.

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A statistician investigating the relationship between the amount of precipitation (in inches) and the number of car accidents gathered data for 10 randomly selected days. The results are presented below. Day Precipitation Number of accidents 1 0.05 5 2 0.12 6 3 0.05 2 4 0.08 4 5 0.10 8 6 0.35 14 7 0.15 7 8 0.30 13 9 0.10 7 10 0.20 10 Predict with 95% confidence the number of accidents that occur when there is 0.40 inches of rain.

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An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education. The results are as follows. Contestant Years of education Winnings 1 11 750 2 15 400 3 12 600 4 16 350 5 11 800 6 16 300 7 13 650 8 14 400 Predict with 95% confidence the winnings of a contestant who has 10 years of education.

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Pop-up coffee vendors have been popular in the city of Adelaide in 2013. A vendor is interested in knowing how temperature (in degrees Celsius) impacts daily hot coffee sales revenue (in $00's). A random sample of 6 days was taken, with the daily hot coffee sales revenue and the corresponding temperature of that day noted. Excel regression output given below. Coffee sales revenue Temperature 6.50 25 10.00 17 5.50 30 4.50 35 3.50 40 28.00 9 SUMMARY OUTPUT RegressionStatistios Multiple R 0.8644 RSquare 0.7472 Adjusted RSquare 0.6840 Standard Error 5.2027 Observations 6 ANOVA df SS MS F Significance F Regression 1 320.0617 320.0617 11.8244 0.0263 Residual 4 108.2716 27.0679 Total 5 4283333 Coefficient StandardError tStat P-value Lover 95\% Upper 95\% Intercept 27.7179 5.6629 4.8946 0.0081 11.9952 43.4406 Temperature -0.6943 0.2019 -3.4387 0.0263 -1.2549 -0.1337 Test the significance of the slope, against a two-tailed alternative, at the 5% level of significance.

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Of the values of the coefficient of determination listed below, which one implies the greatest value of the sum of squares for regression, given that the total variation in y is 1800?

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The standard error of the estimate is the standard deviation of the error variable.

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An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education. The results are as follows. Contestant Years of education Winnings 1 11 750 2 15 400 3 12 600 4 16 350 5 11 800 6 16 300 7 13 650 8 14 400 Predict with 95% confidence the winnings of all contestants who have 10 years of education.

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