Question 1

A scatter diagram is a chart,

Accepted Answer

A)  in which the dependent variable is scaled along the vertical axis. 
B)  in which the independent variable is scaled along the horizontal axis. 
C)  that portrays the relationship between two variables. 
D)  in which the dependent variable is scaled along the vertical axis, the independent variable is scaled along the horizontal axis and portrays the relationship between two variables. 
A)  in which the dependent variable is scaled along the vertical axis. 
B)  in which the independent variable is scaled along the horizontal axis. 
C)  that portrays the relationship between two variables. 
D)  in which the dependent variable is scaled along the vertical axis, the independent variable is scaled along the horizontal axis and portrays the relationship between two variables. D

Question 2

The following table shows the number of workdays absent based on the length of employment in years.   i. The Y intercept of the linear equation is 7.7407.
ii. The dependent variable (Y) is the number of years employed.
iii. The slope of the linear equation is -0.6852.

Accepted Answer

A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (i), (ii), and (iii) are all false statements. 
A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (i), (ii), and (iii) are all false statements. C

Question 3

i. The strength of the correlation between two variables depends on the sign of the coefficient of correlation. ii. A coefficient of correlation close to 0 (say, 0.08) shows that the relationship between two variables is quite weak.
iii. The coefficient of determination is found by taking the square root of the coefficient of correlation.

Accepted Answer

A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) is a correct statement but not (i) or (iii). 
E)  (i), (ii), and (iii) are all false statements. 
A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) is a correct statement but not (i) or (iii). 
E)  (i), (ii), and (iii) are all false statements. D

Question 4

What is the standard error of the estimate?

Accepted Answer

A)  136.8552 
B)  12323.56 
C)  11.6985 
D)  Cannot be computed 
A)  136.8552 
B)  12323.56 
C)  11.6985 
D)  Cannot be computed

Question 5

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Mega Stat printout is shown below. (or use the excel file #contacts and sales n = 20 data only)       Determine the 95% confidence interval for Sales when 25 contacts are made.

Accepted Answer

A)  $14,499, $69,545 
B)  $14.499, $49.265 
C)  $34,779, $49,265 
D)  $34.78, $449.27 
E)  $14.50, $69.55 
A)  $14,499, $69,545 
B)  $14.499, $49.265 
C)  $34,779, $49,265 
D)  $34.78, $449.27 
E)  $14.50, $69.55

Question 6

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Excel printout is shown below.     The slope in this instance indicates:

Accepted Answer

A)  for each additional contact made, the salesperson can anticipate an additional $1983 in sales. 
B)  for each additional contact made, the salesperson can anticipate an additional $1.98 in sales. 
C)  for each additional contact made, the salesperson can anticipate an additional $7,554 in sales. 
D)  for each additional contact made, the salesperson can anticipate a drop of $7,554 in sales. 
E)  for each additional sale made, the salesperson can anticipate an additional 2 contacts are needed. 
A)  for each additional contact made, the salesperson can anticipate an additional $1983 in sales. 
B)  for each additional contact made, the salesperson can anticipate an additional $1.98 in sales. 
C)  for each additional contact made, the salesperson can anticipate an additional $7,554 in sales. 
D)  for each additional contact made, the salesperson can anticipate a drop of $7,554 in sales. 
E)  for each additional sale made, the salesperson can anticipate an additional 2 contacts are needed.

Question 7

The relationship between interest rates as a percent (X) and housing starts (Y) is given by the linear equation Y' = 4094 - 269X. What happens to housing starts as interest rates fall? For what interest rate will the maximum number of housing starts be achieved?

Accepted Answer

A)  Housing starts remain the same; 0% 
B)  Housing starts rise; 0% 
C)  Housing starts fall; 10% 
D)  Housing starts rise; 15% 
A)  Housing starts remain the same; 0% 
B)  Housing starts rise; 0% 
C)  Housing starts fall; 10% 
D)  Housing starts rise; 15%

Question 8

Which value of r indicates a stronger correlation than 0.55?

Accepted Answer

A)  -0.30 
B)  -0.50 
C)  0.30 
D)  .05 
E)  -0.65 
A)  -0.30 
B)  -0.50 
C)  0.30 
D)  .05 
E)  -0.65

Question 9

i. If we are studying the relationship between high school performance and college performance, and want to predict college performance, high school performance is the independent variable. ii. A financial advisor is interested in predicting bond yield based on bond term, i.e., one year, two years, etc. The dependent variable is bond yield.
iii. The variable used to predict the value of another is called the independent variable.

Accepted Answer

A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (i), (ii), and (iii) are all false statements. 
A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (i), (ii), and (iii) are all false statements.

Question 10

In the regression equation, Y' = a + bX, what does the letter "a" represent?

Accepted Answer

A)  Y intercept 
B)  Slope of the line 
C)  Any value of the independent variable that is selected 
A)  Y intercept 
B)  Slope of the line 
C)  Any value of the independent variable that is selected

Question 11

If the correlation coefficient between two variables equals zero, what can be said of the variables X and Y?

Accepted Answer

A)  Not related 
B)  Dependent on each other 
C)  Highly related 
A)  Not related 
B)  Dependent on each other 
C)  Highly related

Question 12

What can we conclude if the coefficient of determination is 0.94?

Accepted Answer

A)  Strength of relationship is 0.94. 
B)  Direction of relationship is positive. 
C)  94% of total variation in one variable is explained by variation in the other variable. 
A)  Strength of relationship is 0.94. 
B)  Direction of relationship is positive. 
C)  94% of total variation in one variable is explained by variation in the other variable.

Question 13

i. Correlation analysis is a group of statistical techniques used to measure the strength of the relationship (correlation) between two variables. ii. A correlation coefficient of -1 or +1 indicates perfect correlation.
iii. The strength of the correlation between two variables depends on the sign of the coefficient of correlation.

Accepted Answer

A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (i), (ii), and (iii) are all false statements. 
A)  (i), (ii), and (iii) are all correct statements. 
B)  (i) and (ii) are correct statements but not (iii). 
C)  (i) and (iii) are correct statements but not (ii). 
D)  (ii) and (iii) are correct statements but not (i). 
E)  (i), (ii), and (iii) are all false statements.

Question 14

What is the variable used to predict the value of another called?

Accepted Answer

A)  Independent 
B)  Dependent 
C)  Correlation 
D)  Determination 
A)  Independent 
B)  Dependent 
C)  Correlation 
D)  Determination

Question 15

Based on the regression equation, we can

Accepted Answer

A)  predict the value of the dependent variable given a value of the independent variable. 
B)  predict the value of the independent variable given a value of the dependent variable. 
C)  measure the association between two variables. 
A)  predict the value of the dependent variable given a value of the independent variable. 
B)  predict the value of the independent variable given a value of the dependent variable. 
C)  measure the association between two variables.

Question 16

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected:       The calculated F value is

Accepted Answer

A)  156.37. 
B)  02.64. 
C)  86.68. 
D)  9.31. 
A)  156.37. 
B)  02.64. 
C)  86.68. 
D)  9.31.

Question 17

i. If the coefficient of correlation is -0.81, what is the coefficient of determination? ii. If the value of r is -0.96, what does this indicate about the dependent variable as the independent variable increases?
iii. If the correlation between sales and advertising is +0.6, what percent of the variation in sales can be attributed to advertising?

Accepted Answer

A)  0.6561; it decreases;36%. 
B)  0.6561; it increases;36%. 
C)  0.6561; it decreases;60%. 
D)  0.9; it decreases;6%. 
E)  0.9; it increases;60%. 
A)  0.6561; it decreases;36%. 
B)  0.6561; it increases;36%. 
C)  0.6561; it decreases;60%. 
D)  0.9; it decreases;6%. 
E)  0.9; it increases;60%.

Question 18

Information was collected from employee records to determine whether there is an association between an employee's age and the number or workdays they miss. Excel results are summarized below:     From this printout you determine:

Accepted Answer

A)  when tested at the 2% level of significance, there is no relationship between an employee's age and the number of days of work absences. 
B)  for each additional year of age, we can expect the number of days of absence to decrease by 0.2 days. 
C)  almost 67% of the variation in the number of absent days can be explained by the variation in the employee's ages. 
D)  when tested at the 2% level of significance, there is relationship between an employee's age and the number of days of work absences. For each additional year of age, we can expect the number of days of absence to decrease by 0.2 days. 
E)  when tested at the 2% level of significance, there is no relationship between an employee's age and the number of days of work absences. Almost 67% of the variation in the number of absent days can be explained by the variation in the employee's ages. 
A)  when tested at the 2% level of significance, there is no relationship between an employee's age and the number of days of work absences. 
B)  for each additional year of age, we can expect the number of days of absence to decrease by 0.2 days. 
C)  almost 67% of the variation in the number of absent days can be explained by the variation in the employee's ages. 
D)  when tested at the 2% level of significance, there is relationship between an employee's age and the number of days of work absences. For each additional year of age, we can expect the number of days of absence to decrease by 0.2 days. 
E)  when tested at the 2% level of significance, there is no relationship between an employee's age and the number of days of work absences. Almost 67% of the variation in the number of absent days can be explained by the variation in the employee's ages.

Question 19

Assume the least squares equation is Y' = 10 + 20X. What does the value of 10 in the equation indicate?

Accepted Answer

A)  Y intercept 
B)  For each unit increased in Y, X increases by 10 
C)  For each unit increased in X, Y increases by 10 
A)  Y intercept 
B)  For each unit increased in Y, X increases by 10 
C)  For each unit increased in X, Y increases by 10

Question 20

Given the following five points: (-2,0), (-1,0), (0,1), (1,1), and (2,3). What is the standard error of the estimate?

Accepted Answer

A)  0 
B)  0.135 
C)  0.367 
D)  0.606 
A)  0 
B)  0.135 
C)  0.367 
D)  0.606

A scatter diagram is a chart,

The following table shows the number of workdays absent based on the length of employment in years. i. The Y intercept of the linear equation is 7.7407. ii. The dependent variable (Y) is the number of years employed. iii. The slope of the linear equation is -0.6852.

What is the standard error of the estimate?

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Excel printout is shown below. The slope in this instance indicates:

The relationship between interest rates as a percent (X) and housing starts (Y) is given by the linear equation Y' = 4094 - 269X. What happens to housing starts as interest rates fall? For what interest rate will the maximum number of housing starts be achieved?

Which value of r indicates a stronger correlation than 0.55?

In the regression equation, Y' = a + bX, what does the letter "a" represent?

If the correlation coefficient between two variables equals zero, what can be said of the variables X and Y?

What can we conclude if the coefficient of determination is 0.94?

What is the variable used to predict the value of another called?

Based on the regression equation, we can

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected: The calculated F value is

Information was collected from employee records to determine whether there is an association between an employee's age and the number or workdays they miss. Excel results are summarized below: From this printout you determine:

Assume the least squares equation is Y' = 10 + 20X. What does the value of 10 in the equation indicate?

Given the following five points: (-2,0), (-1,0), (0,1), (1,1), and (2,3). What is the standard error of the estimate?

What Is Statistics

Describing Data: Frequency Tables, Frequency Distributions, and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Multiple Regression and Correlation Analysis

Chi-Square Applications

Index Numbers

Time Series and Forecasting

An Introduction to Decision Theory

Filters

Exam 12: Linear Regression and Correlation

A scatter diagram is a chart,

The following table shows the number of workdays absent based on the length of employment in years. i. The Y intercept of the linear equation is 7.7407. ii. The dependent variable (Y) is the number of years employed. iii. The slope of the linear equation is -0.6852.

What is the standard error of the estimate?

Data is collected from 20 sales people in order to verify that the more contacts made with potential clients, the greater the sales volume. The Excel printout is shown below. The slope in this instance indicates:

The relationship between interest rates as a percent (X) and housing starts (Y) is given by the linear equation Y' = 4094 - 269X. What happens to housing starts as interest rates fall? For what interest rate will the maximum number of housing starts be achieved?

Which value of r indicates a stronger correlation than 0.55?

In the regression equation, Y' = a + bX, what does the letter "a" represent?

If the correlation coefficient between two variables equals zero, what can be said of the variables X and Y?

What can we conclude if the coefficient of determination is 0.94?

What is the variable used to predict the value of another called?

Based on the regression equation, we can

A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected: The calculated F value is

Information was collected from employee records to determine whether there is an association between an employee's age and the number or workdays they miss. Excel results are summarized below: From this printout you determine:

Assume the least squares equation is Y' = 10 + 20X. What does the value of 10 in the equation indicate?

Given the following five points: (-2,0), (-1,0), (0,1), (1,1), and (2,3). What is the standard error of the estimate?

What Is Statistics

Describing Data: Frequency Tables, Frequency Distributions, and Graphic Presentation

Describing Data: Numerical Measures

A Survey of Probability Concepts

Discrete Probability Distributions

Continuous Probability Distributions

Sampling Methods and the Central Limit Theorem

Estimation and Confidence Intervals

One-Sample Tests of Hypothesis

Two-Sample Tests of Hypothesis

Analysis of Variance

Multiple Regression and Correlation Analysis

Chi-Square Applications

Index Numbers

Time Series and Forecasting

An Introduction to Decision Theory

Filters