Exam 19: Understanding Regression Residuals

A food company launches an advertising campaign for a high fibre cereal and wants to claim that high fibre cereals are lower in calories. In order to research this claim, they obtain nutritional information for 34 breakfast cereals including the amount of fibre (in grams) and the number of calories per serving. The data resulted in the following scatterplot. a. Do you think there is a clear pattern? Describe the association between fibre and calories. b. Comment on any unusual data point or points in the data set. Explain. c. Do you think a model could accurately predict the number of calories in a serving of cereal that has 22 grams of fibre? Explain.

Consider the following to answer the question(s) below: Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic. -A new movie is in the making which has a budget of $350 million. What would the equation in the scatter diagram predict for its box office receipts?

Consider the following to answer the question(s) below: Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic. -A new movie is in the making which has a budget of $350 million. Using the equation in the scatter diagram to predict sales we can say

After transforming data, a model of retail sales of furniture and fixtures in Canada on value of building permits yielded the following equation: log10 (Sales) = 2.33 + 0.57 log10 (Value of permits) What is the predicted value of retail sales if the value of building permits is $700,000?

Quarterly sales figures for e-commerce retail sales were obtained from the first quarter of 2009 through the fourth quarter of 2015. A regression model was estimated to describe the trend in e-commerce retail sales over time. a. Based on the plot of residuals versus predicted values, is the linear model appropriate? Explain. b. The Durbin-Watson statistic for this regression model was found to be 1.727. What can you conclude from this statistic at the 0.01 level of significance?

Consider the following to answer the question(s) below: Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic. -The best practice for modelling this data set given the scatter plot would be

Consider the following to answer the question(s) below: Monthly closing stock prices for a utility company were obtained from January 2014 through August 2015. A regression model was estimated to describe the trend in closing stock prices over time. -Which of the following statement is true about autocorrelation?

Consider the following to answer the question(s) below: Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic. -What does the plot of the residuals and the fitted values suggest?