Question 1

Consider the following data:   ,and   .What is the sample regression equation?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 2

What is the name of the variable that's used to predict another variable?

Accepted Answer

A) Response 
B) Explanatory 
C) Coefficient of determination 
D) Standard error of the estimate 
A) Response 
B) Explanatory 
C) Coefficient of determination 
D) Standard error of the estimate

Question 3

A scatterplot can help determine if two variables are related in some systematic way.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following identifies the range for a correlation coefficient?

Accepted Answer

A) Any value less than 1 
B) Any value greater than 0 
C) Any value between 0 and 1 
D) None of the above 
A) Any value less than 1 
B) Any value greater than 0 
C) Any value between 0 and 1 
D) None of the above

Question 5

Exhibit 14-1.Over the past 30 years,the sample standard deviations of the rates of return for stock X and Stock Y were 0.20 and 0.12,respectively.The sample covariance between the returns of X and Y is 0.0096. Refer to Exhibit 14-1.The correlation of the rates of return between X and Y is closest to:

Accepted Answer

A) 0.20 
B) 0.24 
C) 0.36 
D) 0.40 
A) 0.20 
B) 0.24 
C) 0.36 
D) 0.40

Question 6

Consider the following sample data:   a.Construct and interpret a scatterplot.
B)Calculate and interpret the sample covariance.
C)Calculate and interpret the sample correlation coefficient.

Accepted Answer

a.The scatterplot indicates th

Question 7

Exhibit 14-5.An marketing analyst wants to examine the relationship between sales (in $1,000s)and advertising (in $100s)for firms in the food and beverage industry and collects monthly data for 25 firms.He estimates the model   .The following table below shows a portion of the regression results.   Refer to Exhibit 14-5.Predict Sales for a firm with Advertising of $500.

Accepted Answer

A) $1,480 
B) $40,100 
C) $54,500 
D) $148,000 
A) $1,480 
B) $40,100 
C) $54,500 
D) $148,000

Question 8

The positive square root of the coefficient of determination in simple linear regression is always equal to the correlation coefficient.

Accepted Answer

A) True 
 B)False

Question 9

When testing whether the correlation coefficient differs from zero,the value of the test statistic is   with a corresponding p-value of 0.0061.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

Accepted Answer

A) Yes,since the p-value is less than 0.05. 
B) Yes,since the absolute value of the test statistic exceeds 0.05. 
C) No,since the p-value is less than 0.05. 
D) No,since the absolute value of the test statistic exceeds 0.05. 
A) Yes,since the p-value is less than 0.05. 
B) Yes,since the absolute value of the test statistic exceeds 0.05. 
C) No,since the p-value is less than 0.05. 
D) No,since the absolute value of the test statistic exceeds 0.05.

Question 10

Exhibit 14-5.An marketing analyst wants to examine the relationship between sales (in $1,000s)and advertising (in $100s)for firms in the food and beverage industry and collects monthly data for 25 firms.He estimates the model   .The following table below shows a portion of the regression results.   Refer to Exhibit 14-5.Calculate the standard error of the estimate.

Accepted Answer

A) 4.68 
B) 8.86 
C) 21.91 
D) 78.53 
A) 4.68 
B) 8.86 
C) 21.91 
D) 78.53

Question 11

The simple linear regression model can be written in the form

Accepted Answer

A) True 
 B)False

Question 12

The sample correlation coefficient cannot equal zero.

Accepted Answer

A) True 
 B)False

Question 13

The value 0.75 of a sample correlation coefficient indicates a stronger linear relationship than that of 0.60.

Accepted Answer

A) True 
 B)False

Question 14

A simple linear regression of the return of firm A (   )on the return of firm B (   ),based on 18 observations,is   = 2.2 + 0.4   .If the coefficient of determination from this regression is 0.09 calculate the correlation between   and   .

Accepted Answer

A) 0.03 
B) 0.04 
C) 0.09 
D) 0.30 
A) 0.03 
B) 0.04 
C) 0.09 
D) 0.30

Question 15

The correlation coefficient could be considered as a "standardized covariance."

Accepted Answer

A) True 
 B)False

Question 16

Exhibit 14-3.Consider the following sample regression equation   ,where y is the demand for Product A (in 1000s)and x is the price of the product (in $). Refer to Exhibit 14-3.The slope coefficient indicates that if

Accepted Answer

A) the price of Product A increases by $1,then on average,demand decreases by 20. 
B) the price of Product A increases by $1,then on average,demand increases by 20. 
C) the price of Product A increases by $1,then on average,demand decreases by 20000. 
D) the price of Product A increases by $1,then on average,demand increases by 20000. 
A) the price of Product A increases by $1,then on average,demand decreases by 20. 
B) the price of Product A increases by $1,then on average,demand increases by 20. 
C) the price of Product A increases by $1,then on average,demand decreases by 20000. 
D) the price of Product A increases by $1,then on average,demand increases by 20000.

Question 17

A regression equation was estimated as   .If   and   ,the predicted value of y would be:

Accepted Answer

A) 29. 
B) 77. 
C) 233. 
D) 281. 
A) 29. 
B) 77. 
C) 233. 
D) 281.

Question 18

In testing the population correlation coefficient,the alternative hypothesis is   .

Accepted Answer

A) True 
 B)False

Question 19

Another name for an explanatory variable is the dependent variable.

Accepted Answer

A) True 
 B)False

Question 20

When testing whether the correlation coefficient differs from zero,the value of the test statistic is   with a corresponding p-value of 0.0653.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

Accepted Answer

A) Yes,since the p-value exceeds 0.05. 
B) Yes,since the test statistic value of 1.95 exceeds 0.05. 
C) No,since the p-value exceeds 0.05. 
D) No,since the test statistic value of 1.95 exceeds 0.05. 
A) Yes,since the p-value exceeds 0.05. 
B) Yes,since the test statistic value of 1.95 exceeds 0.05. 
C) No,since the p-value exceeds 0.05. 
D) No,since the test statistic value of 1.95 exceeds 0.05.

Consider the following data: ,and .What is the sample regression equation?

What is the name of the variable that's used to predict another variable?

A scatterplot can help determine if two variables are related in some systematic way.

Which of the following identifies the range for a correlation coefficient?

Consider the following sample data: a.Construct and interpret a scatterplot. B)Calculate and interpret the sample covariance. C)Calculate and interpret the sample correlation coefficient.

The positive square root of the coefficient of determination in simple linear regression is always equal to the correlation coefficient.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is with a corresponding p-value of 0.0061.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

The simple linear regression model can be written in the form

The sample correlation coefficient cannot equal zero.

The value 0.75 of a sample correlation coefficient indicates a stronger linear relationship than that of 0.60.

A simple linear regression of the return of firm A ( )on the return of firm B ( ),based on 18 observations,is = 2.2 + 0.4 .If the coefficient of determination from this regression is 0.09 calculate the correlation between and .

The correlation coefficient could be considered as a "standardized covariance."

Exhibit 14-3.Consider the following sample regression equation ,where y is the demand for Product A (in 1000s)and x is the price of the product (in $). Refer to Exhibit 14-3.The slope coefficient indicates that if

A regression equation was estimated as .If and ,the predicted value of y would be:

In testing the population correlation coefficient,the alternative hypothesis is .

Another name for an explanatory variable is the dependent variable.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is with a corresponding p-value of 0.0653.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

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

Consider the following data: ,and .What is the sample regression equation?

What is the name of the variable that's used to predict another variable?

A scatterplot can help determine if two variables are related in some systematic way.

Which of the following identifies the range for a correlation coefficient?

Consider the following sample data: a.Construct and interpret a scatterplot. B)Calculate and interpret the sample covariance. C)Calculate and interpret the sample correlation coefficient.

The positive square root of the coefficient of determination in simple linear regression is always equal to the correlation coefficient.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is with a corresponding p-value of 0.0061.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

The simple linear regression model can be written in the form

The sample correlation coefficient cannot equal zero.

The value 0.75 of a sample correlation coefficient indicates a stronger linear relationship than that of 0.60.

A simple linear regression of the return of firm A ( )on the return of firm B ( ),based on 18 observations,is = 2.2 + 0.4 .If the coefficient of determination from this regression is 0.09 calculate the correlation between and .

The correlation coefficient could be considered as a "standardized covariance."

Exhibit 14-3.Consider the following sample regression equation ,where y is the demand for Product A (in 1000s)and x is the price of the product (in $). Refer to Exhibit 14-3.The slope coefficient indicates that if

A regression equation was estimated as .If and ,the predicted value of y would be:

In testing the population correlation coefficient,the alternative hypothesis is .

Another name for an explanatory variable is the dependent variable.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is with a corresponding p-value of 0.0653.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

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