Question 1

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 2

Consider the following sample regression equation   = 150 - 20x,where y is the demand for Product A (in 1,000s)and x is the price of the product (in $).If the price of the good increases by $3,then we expect demand for Product A to ______________.

Accepted Answer

A)  increase by 60 
B)  decrease by 60 
C)  decrease by 60,000 
D)  increase by 60,000 
A)  increase by 60 
B)  decrease by 60 
C)  decrease by 60,000 
D)  increase by 60,000

Question 3

Another name for an explanatory variable is the dependent variable.

Accepted Answer

A) True 
 B)False

Question 4

Consider the following sample data:   a.Construct a scatterplot and verify that estimating a simple linear regression is appropriate.
b.Calculate b0 and b1.What is the sample regression equation? Predict y if x equals 15.
c.Interpret the value of the slope coefficient,b1.
d.Calculate   and se.
e.Calculate R2.

Accepted Answer

The slope b₁ and the interceptb₀ of the si

Question 5

An real estate analyst believes that the three main factors that influence an apartment's rent in a college town are the number of bedrooms,the number of bathrooms,and the apartment's square footage.For 40 apartments,she collects data on the rent (y,in $),the number of bedrooms (x1),the number of bathrooms (x2),and its square footage (x3).She estimates the following model as Rent = β0 + β1 Bedroom + β2 Bath + β3 Sqft + ε.The following ANOVA table shows a portion of the regression results.   The standard deviation of the difference between actual rent and the estimate of rent is ____.

Accepted Answer

A)  40 
B)  50.88 
C)  193 
D)  37310 
A)  40 
B)  50.88 
C)  193 
D)  37310

Question 6

The correlation coefficient captures only a ______ relationship.

Accepted Answer

The answer of The correlation coefficient captures only a ______...

Question 7

An real estate analyst believes that the three main factors that influence an apartment's rent in a college town are the number of bedrooms,the number of bathrooms,and the apartment's square footage.For 40 apartments,she collects data on the rent (y,in $),the number of bedrooms (x1),the number of bathrooms (x2),and its square footage (x3).She estimates the following model as Rent = β0 + β1 Bedroom + β2 Bath + β3 Sqft + ε.The following ANOVA table shows a portion of the regression results.   Which of the following would be the rent for a 1,000-square-foot apartment that has two bedrooms and two bathrooms?

Accepted Answer

A)  $840 
B)  $1,130 
C)  $1,260 
D)  $1,335 
A)  $840 
B)  $1,130 
C)  $1,260 
D)  $1,335

Question 8

When estimating   = β0 + β1x1 + β2x2 +ε,the following regression results using ANOVA were obtained.   Which of the following is the coefficient of determination?

Accepted Answer

A)  0.07 
B)  0.10 
C)  0.90 
D)  0.93 
A)  0.07 
B)  0.10 
C)  0.90 
D)  0.93

Question 9

The capital asset pricing model is given by R - RF = α + β(RM - Rf)+ ε,where RM = expected return on the market,Rf = risk-free market return,and R = expected return on a stock or portfolio of interest.The explanatory variable in this model is _________.

Accepted Answer

A)  R 
B)  R - Rf 
C)  RM 
D)  RM - Rf 
A)  R 
B)  R - Rf 
C)  RM 
D)  RM - Rf

Question 10

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 error sum of squares for this sample is equal to ________.

Accepted Answer

A)  10.19 
B)  13.70 
C)  16.61 
D)  20.33 
A)  10.19 
B)  13.70 
C)  16.61 
D)  20.33

Question 11

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 coefficient of determination for this sample is equal to _______.

Accepted Answer

A)  0.456 
B)  0.519 
C)  0.667 
D)  0.712 
A)  0.456 
B)  0.519 
C)  0.667 
D)  0.712

Question 12

A statistics student is asked to estimate y = β0 + β1x + ε.She calculates the following values:   = 440,   ,   = 1,120,n = 11.The value of the slope b1 is ____.

Accepted Answer

A)  −1.29 
B)  −0.51 
C)  0.51 
D)  1.29 
A)  −1.29 
B)  −0.51 
C)  0.51 
D)  1.29

Question 13

A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates the model: Salary = β0 +β1 Advertising + ε.The following ANOVA table below shows a portion of the regression results.   How much of the variation in Salary is unexplained by the model?

Accepted Answer

A)  1% 
B)  2% 
C)  18.39% 
D)  77.94% 
A)  1% 
B)  2% 
C)  18.39% 
D)  77.94%

Question 14

Data was collected for 30 professional tennis players regarding their performance in Grand Slams (the four major tennis tournaments in the world).The response variable Win,expressed as a proportion ranging from 0 to 1,is believed to depend on two explanatory variables: the percentage of the Double Faults and the number of Aces.The following model is estimated:   .A portion of the regression results is shown in the accompanying table.   a.Predict the winning percentage for a player who had 20 double faults and five aces.
b.Interpret the slope coefficient attached to DoubleFaults.
c.Calculate the standard error of the estimate.If the sample mean for Win is 0.50,what can you infer about the model's predictive power?.
d.Calculate and interpret the coefficient of determination.
e.Calculate the adjusted R2.

Accepted Answer

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

Question 15

In the sample regression equation   = b0 + b1x,What is   ?

Accepted Answer

A)  The y-intercept 
B)  The slope of the equation 
C)  The value of y when x = 0 
D)  The predicted value of y,given a specific x value 
A)  The y-intercept 
B)  The slope of the equation 
C)  The value of y when x = 0 
D)  The predicted value of y,given a specific x value

Question 16

A manager at a ski resort in Vermont wanted to determine the effect that weather had on its sales of lift tickets.The manager of the resort collected data over the last 20 years on the number of lift tickets sold during Christmas week (y),the total snowfalls in inches (x1),and the average temperature in degrees Fahrenheit (x2).The following model is estimated:   .A portion of the regression results is shown in the accompanying table.   a.Predict the number of lift tickets sold if during Christmas week,the total snowfall was 25 inches and the average temperature was 35 degrees Fahrenheit.
b.Interpret the slope coefficient attached to Snowfall.
c.Calculate the standard deviation of the difference between the actual number of tickets sold and the estimate of the number of tickets sold.
d.Calculate and interpret the coefficient of determination.
e.Calculate the adjusted R2.

Accepted Answer

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

Question 17

A manager at a local bank analyzed the relationship between monthly salary (y,in $)and length of service (x,measured in months)for 30 employees.She estimates the model: Salary = β0 +β1 Advertising + ε.The following ANOVA table below shows a portion of the regression results.   The coefficient of determination indicates that __________.

Accepted Answer

A)  22.06% of the variation in Salary is explained by the variation in Service 
B)  22.06% of the variation in Service is explained by the variation in Salary 
C)  81.61% of the variation in Salary is explained by the variation in Service 
D)  81.61% of the variation in Service is explained by the variation in Salary 
A)  22.06% of the variation in Salary is explained by the variation in Service 
B)  22.06% of the variation in Service is explained by the variation in Salary 
C)  81.61% of the variation in Salary is explained by the variation in Service 
D)  81.61% of the variation in Service is explained by the variation in Salary

Question 18

John is an undergraduate business major studying at a local university.He wonders how his grade point average (GPA)can affect his future earnings.He asks five recent business school graduates information on their GPA and income (in $1,000s).The following table shows this information.   a.Construct a scatterplot and verify that estimating a simple linear regression is appropriate in this case.
b.Calculate b0 and b1.What is the sample regression equation?
c.Interpret the coefficient for GPA.
d.Find the predicted income earned if a GPA equals 3.0,3.3,and 3.6.

Accepted Answer

The slope b₁ and the interceptb₀ of the si

Question 19

The standard error of the estimate measures ______________.

Accepted Answer

A)  the standard deviation of the residuals. 
B)  the standard deviation of the response variable. 
C)  the standard deviation of the explanatory variable. 
D)  the standard deviation of the correlation coefficient. 
A)  the standard deviation of the residuals. 
B)  the standard deviation of the response variable. 
C)  the standard deviation of the explanatory variable. 
D)  the standard deviation of the correlation coefficient.

Question 20

A sociologist examines the relationship between the poverty rate and several socioeconomic factors.For the 50 states and the District of Columbia (n = 51),he collects data on the poverty rate (y,in %),the percent of the population with at least a high school education (x1),median income (x2,in $1000s),and the mortality rate per 1,000 residents (x3).He estimates the following model as y = β0 + β1 Education + β2 Income + β3 Mortality + ε.The following ANOVA table shows a portion of the regression results.   The coefficient of determination indicates that __________.

Accepted Answer

A)  14% of the variation in the poverty rate is explained by the regression model. 
B)  14% of the variation in the regression model is explained by the variation in the poverty rate. 
C)  86% of the variation in the poverty rate is explained by the regression model. 
D)  86% of the variation in the regression model is explained by the variation in the poverty rate. 
A)  14% of the variation in the poverty rate is explained by the regression model. 
B)  14% of the variation in the regression model is explained by the variation in the poverty rate. 
C)  86% of the variation in the poverty rate is explained by the regression model. 
D)  86% of the variation in the regression model is explained by the variation in the poverty rate.

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

Consider the following sample regression equation = 150 - 20x,where y is the demand for Product A (in 1,000s)and x is the price of the product (in $).If the price of the good increases by $3,then we expect demand for Product A to ______________.

Another name for an explanatory variable is the dependent variable.

The correlation coefficient captures only a ______ relationship.

When estimating = β₀ + β₁x₁ + β₂x₂+ε,the following regression results using ANOVA were obtained. Which of the following is the coefficient of determination?

The capital asset pricing model is given by R - R_F = α + β(R_M - R_f)+ ε,where R_M= expected return on the market,R_f= risk-free market return,and R = expected return on a stock or portfolio of interest.The explanatory variable in this model is _________.

A statistics student is asked to estimate y = β₀ + β₁x + ε.She calculates the following values: = 440, , = 1,120,n = 11.The value of the slope b₁ is ____.

In the sample regression equation = b₀ + b₁x,What is ?

The standard error of the estimate measures ______________.

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

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

Consider the following sample regression equation = 150 - 20x,where y is the demand for Product A (in 1,000s)and x is the price of the product (in $).If the price of the good increases by $3,then we expect demand for Product A to ______________.

Another name for an explanatory variable is the dependent variable.

The correlation coefficient captures only a ______ relationship.

When estimating = β0 + β1x1 + β2x2 +ε,the following regression results using ANOVA were obtained. Which of the following is the coefficient of determination?

The capital asset pricing model is given by R - RF = α + β(RM - Rf)+ ε,where RM = expected return on the market,Rf = risk-free market return,and R = expected return on a stock or portfolio of interest.The explanatory variable in this model is _________.

A statistics student is asked to estimate y = β0 + β1x + ε.She calculates the following values: = 440, , = 1,120,n = 11.The value of the slope b1 is ____.

In the sample regression equation = b0 + b1x,What is ?

The standard error of the estimate measures ______________.

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

When estimating = β₀ + β₁x₁ + β₂x₂+ε,the following regression results using ANOVA were obtained. Which of the following is the coefficient of determination?

The capital asset pricing model is given by R - R_F = α + β(R_M - R_f)+ ε,where R_M= expected return on the market,R_f= risk-free market return,and R = expected return on a stock or portfolio of interest.The explanatory variable in this model is _________.

A statistics student is asked to estimate y = β₀ + β₁x + ε.She calculates the following values: = 440, , = 1,120,n = 11.The value of the slope b₁ is ____.

In the sample regression equation = b₀ + b₁x,What is ?