Question 1

A regression equation was estimated as   = 155 - 34x1 - 12x2.If x1 = 3 and x2 = 2,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 2

Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand.The price of a particular novel was adjusted each week and the weekly sales were recorded in the following table.   Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel.The regression sum of squares for this sample is equal to ________.

Accepted Answer

A)  4.17 
B)  4.61 
C)  5.16 
D)  6.25 
A)  4.17 
B)  4.61 
C)  5.16 
D)  6.25

Question 3

A sample of 30 observations provides the following statistics: sx = 14;sy = 19;sxy = -150.
a.Calculate and interpret the sample correlation coefficient rxy.
b.Specify the hypotheses to determine whether or not x and y are significantly correlated.
c.At the 5% significance level,what is the conclusion to the test using the critical-value approach? Explain.
d.At the 5% significance level,what is the conclusion to the test using the p-value approach? Explain.

Accepted Answer

The correlation coefficient is computed

Question 4

Consider the following information regarding a response variable y and an explanatory variable x.     a.Calculate b0 and b1.
b.What is the sample regression equation? Predict y if x equals 10.
c.Calculate the standard error of the estimate.
d.Calculate and interpret the coefficient of determination.

Accepted Answer

The slope b₁ and the interceptb₀ of the si

Question 5

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.When testing whether the correlation coefficient differs from zero,the value of the test statistic is t28 = 2.31.At the 5% significance level,the critical value is t0.025,28 = 2.048.The conclusion to the hypothesis test is to ___________.

Accepted Answer

A)  to reject H0;we can conclude that the correlation coefficient differs from zero. 
B)  to reject H0;we cannot conclude that the correlation coefficient differs from zero. 
C)  do not reject H0;we can conclude that the correlation coefficient differs from zero. 
D)  do not reject H0;we cannot conclude that the correlation coefficient differs from zero. 
A)  to reject H0;we can conclude that the correlation coefficient differs from zero. 
B)  to reject H0;we cannot conclude that the correlation coefficient differs from zero. 
C)  do not reject H0;we can conclude that the correlation coefficient differs from zero. 
D)  do not reject H0;we cannot conclude that the correlation coefficient differs from zero.

Question 6

The relationship between the response variable and the explanatory variables is _________ if the value of the response variable is uniquely determined by the explanatory variables.

Accepted Answer

The answer of The relationship between the response variable and...

Question 7

An investment analyst wants to examine the relationship between a mutual fund's return,its turnover rate,and its expense ratio.She randomly selects 10 mutual funds and estimates:   ,where Return is the average five-year return (in %),Turnover is the annual holdings turnover (in %),Expense is the annual expense ratio (in %),and is the random error component.A portion of the regression results is shown in the accompanying table.   a.Predict the return for a mutual fund that has an annual holdings turnover of 60% and an annual expense ratio of 1.5%.
b.Interpret the slope coefficient attached to Expense.
c.Calculate the standard error of the estimate.If the sample mean for Return is 34.7%,what can you infer about the model's predictive power.
d.Calculate and interpret the coefficient of determination.

Accepted Answer

The regression equation is @#IMG-DLM& .Use given c

Question 8

The coefficient of determination R2 is _______________.

Accepted Answer

A)  sometimes negative 
B)  always lower than adjusted R2 
C)  usually higher than adjusted R2 
D)  always equal to adjusted R2 
A)  sometimes negative 
B)  always lower than adjusted R2 
C)  usually higher than adjusted R2 
D)  always equal to adjusted R2

Question 9

Which of the following Excel's functions return the correlation coefficient?

Accepted Answer

A)  CORRELATION 
B)  CORREL 
C)  CORREL.S 
D)  COVARIANCE.S 
A)  CORRELATION 
B)  CORREL 
C)  CORREL.S 
D)  COVARIANCE.S

Question 10

Each point in the scatterplot represents one observed value for one variable.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Consider the following simple linear regression model: y = β0 + β1x +ε.β0 and β1 are __________________.

Accepted Answer

A)  the response variables 
B)  the random error terms 
C)  the unknown parameters 
D)  the explanatory variables 
A)  the response variables 
B)  the random error terms 
C)  the unknown parameters 
D)  the explanatory variables

Question 13

When testing whether the correlation coefficient differs from zero,the value of the test statistic is t20 = -2.95 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 14

The following table shows the number of cars sold last month by six dealers at Centreville Nissan dealership and their number of years of sales experience.   Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience.The slope of the regression equation is equal to _______.

Accepted Answer

A)  −3.33 
B)  0.71 
C)  1.00 
D)  6.15 
A)  −3.33 
B)  0.71 
C)  1.00 
D)  6.15

Question 15

The numerical measure that gauges dispersion from the sample regression equation is the sample _______ of the residual.

Accepted Answer

The answer of The numerical measure that gauges dispersion from...

Question 16

The correlation coefficient can only range between 0 and 1.

Accepted Answer

A) True 
 B)False

Question 17

When estimating   = b0 + b1x1 + b2x2,the following regression results using ANOVA were obtained.   Which of the following is the prediction of   if x1 = 1 and x2 = 2?

Accepted Answer

A)  −1.9 
B)  −0.3 
C)  1.3 
D)  1.9 
A)  −1.9 
B)  −0.3 
C)  1.3 
D)  1.9

Question 18

Calculate the value of R2 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 19

Assume you ran a multiple regression to gain a better understanding of the relationship between lumber sales,housing starts,and commercial construction.The regression uses lumber sales (in $100,000s)as the response variable with housing starts (in 1000s)(in 1,000s)and commercial construction (in 1000s)(in 1,000s)as the explanatory variables.The estimated model is Lumber Sales = β0 + β1 Housing Starts + β2Commercial Constructions + ε.The following ANOVA table summarizes a portion of the regression results.   If Housing Starts were 17,000 and Commercial Construction was 3,200,the best estimate of Lumber Sales would be ______________.

Accepted Answer

A)  $16,920,000 
B)  $16,925,370 
C)  $22,014,000 
D)  $22,290,000 
A)  $16,920,000 
B)  $16,925,370 
C)  $22,014,000 
D)  $22,290,000

Question 20

Which of the following is not true of the standard error of the estimate?

Accepted Answer

A)  It can take on negative values. 
B)  Theoretically,its value has no predefined upper limit. 
C)  It is a measure of the accuracy of the regression model. 
D)  It is based on the squared deviations between the actual and predicted values of the response variable. 
A)  It can take on negative values. 
B)  Theoretically,its value has no predefined upper limit. 
C)  It is a measure of the accuracy of the regression model. 
D)  It is based on the squared deviations between the actual and predicted values of the response variable.

A regression equation was estimated as = 155 - 34x₁ - 12x_2.If x₁= 3 and x₂= 2,the predicted value of y would be _____.

Consider the following information regarding a response variable y and an explanatory variable x. a.Calculate b₀ and b₁. b.What is the sample regression equation? Predict y if x equals 10. c.Calculate the standard error of the estimate. d.Calculate and interpret the coefficient of determination.

The relationship between the response variable and the explanatory variables is _________ if the value of the response variable is uniquely determined by the explanatory variables.

The coefficient of determination R² is _______________.

Which of the following Excel's functions return the correlation coefficient?

Each point in the scatterplot represents one observed value for one variable.

The standard error of the estimate measures ____________.

Consider the following simple linear regression model: y = β₀ + β₁x +ε.β₀ and β₁ are __________________.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is t₂₀ = -2.95 with a corresponding p-value of 0.0061.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

The numerical measure that gauges dispersion from the sample regression equation is the sample _______ of the residual.

The correlation coefficient can only range between 0 and 1.

When estimating = b₀ + b₁x₁ + b₂x₂,the following regression results using ANOVA were obtained. Which of the following is the prediction of if x₁ = 1 and x₂ = 2?

Calculate the value of R²given the ANOVA portion of the following regression output:

Which of the following is not true of the standard error of the estimate?

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

A regression equation was estimated as = 155 - 34x1 - 12x2.If x1 = 3 and x2 = 2,the predicted value of y would be _____.

Consider the following information regarding a response variable y and an explanatory variable x. a.Calculate b0 and b1. b.What is the sample regression equation? Predict y if x equals 10. c.Calculate the standard error of the estimate. d.Calculate and interpret the coefficient of determination.

The relationship between the response variable and the explanatory variables is _________ if the value of the response variable is uniquely determined by the explanatory variables.

The coefficient of determination R2 is _______________.

Which of the following Excel's functions return the correlation coefficient?

Each point in the scatterplot represents one observed value for one variable.

The standard error of the estimate measures ____________.

Consider the following simple linear regression model: y = β0 + β1x +ε.β0 and β1 are __________________.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is t20 = -2.95 with a corresponding p-value of 0.0061.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

The numerical measure that gauges dispersion from the sample regression equation is the sample _______ of the residual.

The correlation coefficient can only range between 0 and 1.

When estimating = b0 + b1x1 + b2x2,the following regression results using ANOVA were obtained. Which of the following is the prediction of if x1 = 1 and x2 = 2?

Calculate the value of R2 given the ANOVA portion of the following regression output:

Which of the following is not true of the standard error of the estimate?

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

A regression equation was estimated as = 155 - 34x₁ - 12x_2.If x₁= 3 and x₂= 2,the predicted value of y would be _____.

The coefficient of determination R² is _______________.

Consider the following simple linear regression model: y = β₀ + β₁x +ε.β₀ and β₁ are __________________.

When testing whether the correlation coefficient differs from zero,the value of the test statistic is t₂₀ = -2.95 with a corresponding p-value of 0.0061.At the 5% significance level,can you conclude that the correlation coefficient differs from zero?

When estimating = b₀ + b₁x₁ + b₂x₂,the following regression results using ANOVA were obtained. Which of the following is the prediction of if x₁ = 1 and x₂ = 2?

Calculate the value of R²given the ANOVA portion of the following regression output: