Question 1

In the simple linear regression model,β0 is the y-intercept of the line   .

Accepted Answer

A) True 
 B)False

Question 2

Exhibit 14-8.An real estate analyst believes that the three main factors that influence an apartment's rent in a college town are the number of bedrooms,the number of bathrooms,and the apartment's square footage.For 40 apartments,she collects data on the rent (y,in $),the number of bedrooms (x1),the number of bathrooms (x2),and its square footage (x3).She estimates the following model:   .The following table shows a portion of the regression results.   Refer to Exhibit 14-8.The slope coefficient attached to Bed indicates that,holding other explanatory variables constant,

Accepted Answer

A) An additional bedroom increases rent,on average,by $226. 
B) An additional bedroom increases rent,on average,by $526. 
C) An additional $226 in rent will lead to an additional bedroom. 
D) An additional $526 in rent will lead to an additional bedroom. 
A) An additional bedroom increases rent,on average,by $226. 
B) An additional bedroom increases rent,on average,by $526. 
C) An additional $226 in rent will lead to an additional bedroom. 
D) An additional $526 in rent will lead to an additional bedroom.

Question 3

If two linear regression models have the same number of explanatory variables,a model with an R2 value of 0.45 is a better prediction model than a model with an R2 value of 0.65.

Accepted Answer

A) True 
 B)False

Question 4

The standard error of the estimate measures

Accepted Answer

A) the variability of the explanatory variables. 
B) the variability of the values of the sample regression coefficients. 
C) the variability of the observed y-values around the predicted y-values. 
D) the variability of the predicted y-values around the mean of the observed y-values. 
A) the variability of the explanatory variables. 
B) the variability of the values of the sample regression coefficients. 
C) the variability of the observed y-values around the predicted y-values. 
D) the variability of the predicted y-values around the mean of the observed y-values.

Question 5

Exhibit 14-10.A sociologist examines the relationship between the poverty rate and several socioeconomic factors.For the 50 states and the District of Columbia (n = 51),he collects data on the poverty rate (y,in %),the percent of the population with at least a high school education (x1),median income (x2,in $1000s),and the mortality rate per 1,000 residents (x3).He estimates the following model:   .The following table shows a portion of the regression results.   Notes: Data obtained from the Statistical Abstract of the US for the year 2007. Refer to Exhibit 14-10.What is the poverty rate for a state where 85% of the population has at least a high school education,the median income is $50,000,and the mortality rate is 10 per 1000 residents?

Accepted Answer

A) 12.6% 
B) 14.6% 
C) 16.6% 
D) 18.6% 
A) 12.6% 
B) 14.6% 
C) 16.6% 
D) 18.6%

Question 6

Consider the sample regression equation:   .When x1 increases 1 unit and x2 increases 2 units,while x3 and x4 remain unchanged,what change would you expect in the predicted y?

Accepted Answer

A) Decrease by 2 
B) Decrease by 10 
C) Increase by 2 
D) No change in the predicted y 
A) Decrease by 2 
B) Decrease by 10 
C) Increase by 2 
D) No change in the predicted y

Question 7

The variance of the rates of return is 0.25 for stock X and 0.01 for stock Y.The covariance between the returns of X and Y is -0.01.The correlation of the rates of return between X and Y is:

Accepted Answer

A) -0.25 
B) -0.20 
C) 0.20 
D) 0.25 
A) -0.25 
B) -0.20 
C) 0.20 
D) 0.25

Question 8

Exhibit 14-6.A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates   .The following table summarizes a portion of the regression results:   Refer to Exhibit 14-6.The standard error of the estimate is

Accepted Answer

A) 3.20 
B) 269.63 
C) 322.25 
D) 72699 
A) 3.20 
B) 269.63 
C) 322.25 
D) 72699

Question 9

Exhibit 14-9.When estimating   ,the following regression results were obtained.   Refer to Exhibit 14-9.What is the coefficient of determination?

Accepted Answer

A) 0.07 
B) 0.10 
C) 0.90 
D) 0.93 
A) 0.07 
B) 0.10 
C) 0.90 
D) 0.93

Question 10

The sample standard deviations for x and y are 10 and 15,respectively.The covariance between x and y is -300.The correlation coefficient between x and y is:

Accepted Answer

A) -2 
B) -0.5 
C) 0.5 
D) 2 
A) -2 
B) -0.5 
C) 0.5 
D) 2

Question 11

The value 0.35 of a sample correlation coefficient indicates a weaker linear relationship than that of -0.40.

Accepted Answer

A) True 
 B)False

Question 12

Calculate the value of   given the ANOVA portion of the following regression output:

Accepted Answer

A) 0.151 
B) 0.515 
C) 0.849 
D) 1.000 
A) 0.151 
B) 0.515 
C) 0.849 
D) 1.000

Question 13

Consider the sample regression equation:   .When x1 increases 1 unit and x2 increases 2 units,while x3 and x4 remain unchanged,what change would you expect in the predicted y?

Accepted Answer

A) Decrease by 2 
B) Decrease by 4 
C) Decrease by 7 
D) No change in predicted y 
A) Decrease by 2 
B) Decrease by 4 
C) Decrease by 7 
D) No change in predicted y

Question 14

The following scatterplot implies that the relationship between the two variables x and y is:

Accepted Answer

A) Strong and positive. 
B) Strong and negative. 
C) Weak and negative. 
D) No relationship. 
A) Strong and positive. 
B) Strong and negative. 
C) Weak and negative. 
D) No relationship.

Question 15

In a simple linear regression model,if the plots on a scatter diagram lie on a straight line,what is the coefficient of determination?

Accepted Answer

A) -1 
B) 0 
C) +1 
D) Infinity 
A) -1 
B) 0 
C) +1 
D) Infinity

Question 16

Consider the following simple linear regression model:   .The response variable is:

Accepted Answer

A) y 
B) x 
C) ε 
D) β0 
A) y 
B) x 
C) ε 
D) β0

Question 17

In the sample regression equation   ,what is   ?

Accepted Answer

A) The y-intercept 
B) The slope of the equation 
C) The value of y when x = 0 
D) The predicted value of y,given a specific x value 
A) The y-intercept 
B) The slope of the equation 
C) The value of y when x = 0 
D) The predicted value of y,given a specific x value

Question 18

Exhibit 14-4.Consider the following sample regression equation   ,where y is the supply for Product A (in 1000s)and x is the price of Product A (in $). Refer to Exhibit 14-4.If the price of Product A increases by $3,then we expect the supply for Product A to

Accepted Answer

A) increase by 30. 
B) decrease by 30. 
C) increase by 30,000. 
D) decrease by 30,000. 
A) increase by 30. 
B) decrease by 30. 
C) increase by 30,000. 
D) decrease by 30,000.

Question 19

The correlation coefficient can only range between 0 and 1.

Accepted Answer

A) True 
 B)False

Question 20

An analyst examines the effect that various variables have on crop yield.He estimates   where y is the average yield in bushels per acre,x1 is the amount of summer rainfall,x2 is the average daily use in machine hours of tractors on the farm,and x3 is the amount of fertilizer used per acre.The results of the regression are:   
A)Predict the crop yield per acre if x1 is 5,x2 is 4,and x3 is the 0.5.
B)Calculate the standard deviation of the difference between the actual crop yield and the estimate of the crop yield.
C)How much of the variation in crop yield is unexplained by the model?

Accepted Answer

a.63.6;
b.

In the simple linear regression model,β₀ is the y-intercept of the line .

If two linear regression models have the same number of explanatory variables,a model with an R² value of 0.45 is a better prediction model than a model with an R² value of 0.65.

The standard error of the estimate measures

Consider the sample regression equation: .When x₁ increases 1 unit and x₂ increases 2 units,while x₃ and x₄ remain unchanged,what change would you expect in the predicted y?

The variance of the rates of return is 0.25 for stock X and 0.01 for stock Y.The covariance between the returns of X and Y is -0.01.The correlation of the rates of return between X and Y is:

Exhibit 14-6.A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates .The following table summarizes a portion of the regression results: Refer to Exhibit 14-6.The standard error of the estimate is

Exhibit 14-9.When estimating ,the following regression results were obtained. Refer to Exhibit 14-9.What is the coefficient of determination?

The sample standard deviations for x and y are 10 and 15,respectively.The covariance between x and y is -300.The correlation coefficient between x and y is:

The value 0.35 of a sample correlation coefficient indicates a weaker linear relationship than that of -0.40.

Calculate the value of given the ANOVA portion of the following regression output:

Consider the sample regression equation: .When x₁ increases 1 unit and x₂ increases 2 units,while x₃ and x₄ remain unchanged,what change would you expect in the predicted y?

The following scatterplot implies that the relationship between the two variables x and y is:

In a simple linear regression model,if the plots on a scatter diagram lie on a straight line,what is the coefficient of determination?

Consider the following simple linear regression model: .The response variable is:

In the sample regression equation ,what is ?

Exhibit 14-4.Consider the following sample regression equation ,where y is the supply for Product A (in 1000s)and x is the price of Product A (in $). Refer to Exhibit 14-4.If the price of Product A increases by $3,then we expect the supply for Product A to

The correlation coefficient can only range between 0 and 1.

Statistics and Data

Tabular and Graphical Methods

Numerical Descriptive Measures

Basic Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Testing

Statistical Inference Concerning Two Populations

Statistical Inference Concerning Variance

Chi-Square Tests

Analysis of Variance

Inference With Regression Models

Regression Models for Nonlinear Relationships

Regression Models With Dummy Variables

Time Series and Forecasting

Returns, Index Numbers and Inflation

Nonparametric Tests

Filters

Exam 14: Regression Analysis

In the simple linear regression model,β0 is the y-intercept of the line .

If two linear regression models have the same number of explanatory variables,a model with an R2 value of 0.45 is a better prediction model than a model with an R2 value of 0.65.

The standard error of the estimate measures

Consider the sample regression equation: .When x1 increases 1 unit and x2 increases 2 units,while x3 and x4 remain unchanged,what change would you expect in the predicted y?

The variance of the rates of return is 0.25 for stock X and 0.01 for stock Y.The covariance between the returns of X and Y is -0.01.The correlation of the rates of return between X and Y is:

Exhibit 14-6.A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates .The following table summarizes a portion of the regression results: Refer to Exhibit 14-6.The standard error of the estimate is

Exhibit 14-9.When estimating ,the following regression results were obtained. Refer to Exhibit 14-9.What is the coefficient of determination?

The sample standard deviations for x and y are 10 and 15,respectively.The covariance between x and y is -300.The correlation coefficient between x and y is:

The value 0.35 of a sample correlation coefficient indicates a weaker linear relationship than that of -0.40.

Calculate the value of given the ANOVA portion of the following regression output:

Consider the sample regression equation: .When x1 increases 1 unit and x2 increases 2 units,while x3 and x4 remain unchanged,what change would you expect in the predicted y?

The following scatterplot implies that the relationship between the two variables x and y is:

In a simple linear regression model,if the plots on a scatter diagram lie on a straight line,what is the coefficient of determination?

Consider the following simple linear regression model: .The response variable is:

In the sample regression equation ,what is ?

Exhibit 14-4.Consider the following sample regression equation ,where y is the supply for Product A (in 1000s)and x is the price of Product A (in $). Refer to Exhibit 14-4.If the price of Product A increases by $3,then we expect the supply for Product A to

The correlation coefficient can only range between 0 and 1.

Statistics and Data

Tabular and Graphical Methods

Numerical Descriptive Measures

Basic Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling and Sampling Distributions

Interval Estimation

Hypothesis Testing

Statistical Inference Concerning Two Populations

Statistical Inference Concerning Variance

Chi-Square Tests

Analysis of Variance

Inference With Regression Models

Regression Models for Nonlinear Relationships

Regression Models With Dummy Variables

Time Series and Forecasting

Returns, Index Numbers and Inflation

Nonparametric Tests

Filters

In the simple linear regression model,β₀ is the y-intercept of the line .

If two linear regression models have the same number of explanatory variables,a model with an R² value of 0.45 is a better prediction model than a model with an R² value of 0.65.

Consider the sample regression equation: .When x₁ increases 1 unit and x₂ increases 2 units,while x₃ and x₄ remain unchanged,what change would you expect in the predicted y?

Consider the sample regression equation: .When x₁ increases 1 unit and x₂ increases 2 units,while x₃ and x₄ remain unchanged,what change would you expect in the predicted y?