Question 1

The term ε in the regression model represents

Accepted Answer

A)  the slope of the regression model. 
B)  a random error term. 
C)  a correction for mistakes in measuring X. 
D)  a correction for the fact that we are taking a sample. 
A)  the slope of the regression model. 
B)  a random error term. 
C)  a correction for mistakes in measuring X. 
D)  a correction for the fact that we are taking a sample.

Question 2

Exhibit 9.2
The following questions are based on the problem description and spreadsheet below.
A paint manufacturer is interested in knowing how much pressure (in pounds per square inch, PSI) builds up inside aerosol cans at various temperatures (degrees Fahrenheit). It has developed the following Excel spreadsheet of the results.  
-Refer to Exhibit 9.2. Interpret the meaning of R Square in cell B3 of the spreadsheet.

Accepted Answer

The R Square value of 0. 9998

Question 3

Assume you have chosen to use all three variables in your model. Test the significance of the model and explain which values you used to reach your conclusion.

Accepted Answer

The model is significant based on the Si

Question 4

How many binary variables are required to encode a person's age group as being either young, middle-age or old? What are the variables and what are the meanings of their 0, 1 values?

Accepted Answer

Two binary variables are neede

Question 5

In regression modeling, the objective is to determines the values of model coefficients that minimize the sum of squared estimation errors, or error sum of squares (ESS).

Accepted Answer

A) True 
 B)False

Question 6

The error sum of squares term is used as a criterion for determining b0 and b1 because

Accepted Answer

A)  the sum of errors will always equal zero. 
B)  the term can be solved for exact values of b0 and b1. 
C)  both b0 and b1 can be easily calculated using the sum of squares term. 
D)  all of these. 
A)  the sum of errors will always equal zero. 
B)  the term can be solved for exact values of b0 and b1. 
C)  both b0 and b1 can be easily calculated using the sum of squares term. 
D)  all of these.

Question 7

Exhibit 9.1
The following questions are based on the problem description and spreadsheet below.
A company has built a regression model to predict the number of labor hours (YS1U1B1iS1U1B0) required to process a batch of parts (XS1U1B1iS1U1B0). It has developed the following Excel spreadsheet of the results.  
-Refer to Exhibit 9.1. Interpret the meaning of R Square in cell B3 of the spreadsheet.

Accepted Answer

The R Square value of 0. 9941

Question 8

The method of least squares finds estimates of parameter values that minimize:

Accepted Answer

A)  TSS. 
B)  RSS. 
C)  ESS. 
D)  ESS + RSS. 
A)  TSS. 
B)  RSS. 
C)  ESS. 
D)  ESS + RSS.

Question 9

The terms b0 and b1 are referred to as

Accepted Answer

A)  population variables. 
B)  population parameters. 
C)  estimated population variables. 
D)  estimated population parameters. 
A)  population variables. 
B)  population parameters. 
C)  estimated population variables. 
D)  estimated population parameters.

Question 10

The error term ε in a regression model represents

Accepted Answer

A)  a random error in the data. 
B)  unsystematic variation in the dependent variable. 
C)  variation not explained by the independent variables. 
D)  all of these. 
A)  a random error in the data. 
B)  unsystematic variation in the dependent variable. 
C)  variation not explained by the independent variables. 
D)  all of these.

Question 11

Exhibit 9.4
The following questions are based on the problem description and spreadsheet below.
A charitable organization wants to determine what type of people donate to charities like itself. The charity felt that a person's education (in years), annual income, ($1,000) and the number of children the person had were important variables to consider. The charity developed regression models for all of the possible combinations of these three variables but does not know what to do with the results.  
-Refer to Exhibit 9.4. Predict the mean donation by a person with 16 years of education, $90,000 annual income and 2 children. Use a full model based on data from the table.

Accepted Answer

The answer of Exhibit 9.4
The following questions are based on...

Question 12

For a simple linear regression model, a 100(1 − α)% prediction interval for a new value of Y when X = Xh is computed as

Accepted Answer

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

Question 13

Exhibit 9.2
The following questions are based on the problem description and spreadsheet below.
A paint manufacturer is interested in knowing how much pressure (in pounds per square inch, PSI) builds up inside aerosol cans at various temperatures (degrees Fahrenheit). It has developed the following Excel spreadsheet of the results.  
-Refer to Exhibit 9.2. Predict the mean pressure for a temperature of 120 degrees.

Accepted Answer

The answer of Exhibit 9.2
The following questions are based on...

Question 14

An analyst has identified 3 independent variables (X1, X2, X3) which might be used to predict Y. He has computed the regression equations using all combinations of the variables and the results are summarized in the following table. Which combination of variables provides the best regression results?

Accepted Answer

A)  X1 
B)  X1, X2 and X3 
C)  X1 and X2 
D)  X2 and X3 
A)  X1 
B)  X1, X2 and X3 
C)  X1 and X2 
D)  X2 and X3

Question 15

The total sum of squares (TSS) is best defined as

Accepted Answer

A)  the sums of squares of the dependent variables. 
B)  the total variation of Y around its mean. 
C)  the sums of squares of the predicted values. 
D)  the variation of Y around its mean plus the variation of Y around the predicted values. 
A)  the sums of squares of the dependent variables. 
B)  the total variation of Y around its mean. 
C)  the sums of squares of the predicted values. 
D)  the variation of Y around its mean plus the variation of Y around the predicted values.

Question 16

The estimated value of Y1 is given by

Accepted Answer

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

Question 17

R2 is also referred to as

Accepted Answer

A)  coefficient of determination. 
B)  correlation coefficient. 
C)  total sum of squares. 
D)  regression sum of squares. 
A)  coefficient of determination. 
B)  correlation coefficient. 
C)  total sum of squares. 
D)  regression sum of squares.

Question 18

A persistent upward or downward movement of data is called

Accepted Answer

A)  trend 
B)  seasonality 
C)  irregular variation 
D)  dampening signal 
A)  trend 
B)  seasonality 
C)  irregular variation 
D)  dampening signal

Question 19

​In a model: Yi = $\beta$0 + $\beta$1X1i + $\varepsilon$i , the terms $\beta$0 and$\beta$1 are referred to as sample statistics.

Accepted Answer

A) True 
 B)False

Question 20

Why do we create a scatter plot of the data in regression analysis?

Accepted Answer

A)  To compute the error terms. 
B)  Because Excel calculates the function from the scatter plot. 
C)  To visually check for a relationship between X and Y. 
D)  To estimate predicted values. 
A)  To compute the error terms. 
B)  Because Excel calculates the function from the scatter plot. 
C)  To visually check for a relationship between X and Y. 
D)  To estimate predicted values.

The term ε in the regression model represents

Assume you have chosen to use all three variables in your model. Test the significance of the model and explain which values you used to reach your conclusion.

How many binary variables are required to encode a person's age group as being either young, middle-age or old? What are the variables and what are the meanings of their 0, 1 values?

In regression modeling, the objective is to determines the values of model coefficients that minimize the sum of squared estimation errors, or error sum of squares (ESS).

The error sum of squares term is used as a criterion for determining b₀ and b₁ because

The method of least squares finds estimates of parameter values that minimize:

The terms b₀ and b₁ are referred to as

The error term ε in a regression model represents

For a simple linear regression model, a 100(1 − α)% prediction interval for a new value of Y when X = X_h is computed as

The total sum of squares (TSS) is best defined as

The estimated value of Y₁ is given by

R² is also referred to as

A persistent upward or downward movement of data is called

In a model: Y_i = $\beta$ 0 + $\beta$ 1X₁_i + $\varepsilon$ i , the terms $\beta$ 0 and $\beta$ 1 are referred to as sample statistics.

Why do we create a scatter plot of the data in regression analysis?

Introduction to Modeling and Decision Analysis

Introduction to Optimization and Linear Programming

Modeling and Solving Lp Problems in a Spreadsheet

Sensitivity Analysis and the Simplex Method

Network Modeling

Integer Linear Programming

Goal Programming and Multiple Objective Optimization

Nonlinear Programming Evolutionary Optimization

Data Mining

Time Series Forecasting

Introduction to Simulation Using Analytic Solver Platform

Queuing Theory

Decision Analysis

Project Management Online

Filters

Exam 9: Regression Analysis

The term ε in the regression model represents

Assume you have chosen to use all three variables in your model. Test the significance of the model and explain which values you used to reach your conclusion.

How many binary variables are required to encode a person's age group as being either young, middle-age or old? What are the variables and what are the meanings of their 0, 1 values?

In regression modeling, the objective is to determines the values of model coefficients that minimize the sum of squared estimation errors, or error sum of squares (ESS).

The error sum of squares term is used as a criterion for determining b0 and b1 because

The method of least squares finds estimates of parameter values that minimize:

The terms b0 and b1 are referred to as

The error term ε in a regression model represents

For a simple linear regression model, a 100(1 − α)% prediction interval for a new value of Y when X = Xh is computed as

The total sum of squares (TSS) is best defined as

The estimated value of Y1 is given by

R2 is also referred to as

A persistent upward or downward movement of data is called

​In a model: Yi = β\betaβ 0 + β\betaβ 1X1i + ε\varepsilonε i , the terms β\betaβ 0 and β\betaβ 1 are referred to as sample statistics.

Why do we create a scatter plot of the data in regression analysis?

Introduction to Modeling and Decision Analysis

Introduction to Optimization and Linear Programming

Modeling and Solving Lp Problems in a Spreadsheet

Sensitivity Analysis and the Simplex Method

Network Modeling

Integer Linear Programming

Goal Programming and Multiple Objective Optimization

Nonlinear Programming Evolutionary Optimization

Data Mining

Time Series Forecasting

Introduction to Simulation Using Analytic Solver Platform

Queuing Theory

Decision Analysis

Project Management Online

Filters

The error sum of squares term is used as a criterion for determining b₀ and b₁ because

The terms b₀ and b₁ are referred to as

For a simple linear regression model, a 100(1 − α)% prediction interval for a new value of Y when X = X_h is computed as

The estimated value of Y₁ is given by

R² is also referred to as

In a model: Y_i = $\beta$ 0 + $\beta$ 1X₁_i + $\varepsilon$ i , the terms $\beta$ 0 and $\beta$ 1 are referred to as sample statistics.