Deck 18: Multiple Regression

Question 1

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.The adjusted R² value was reported as 83.3%.This means that ________________________ .

A)selling price and amount spent advertising do not describe TV sales well
B)83.3% of the variance in TV sales can be accounted for by selling price
C)83.3% of the variance in TV sales can be accounted for by amount spent advertising
D)83.3% of the variance in TV sales can be accounted for by the model including both selling price and amount spent advertising
E)both selling price and amount spent advertising are significant predictors of TV sales

Answer 1

83.3% of the variance in TV sales can be accounted for by the model including both selling price and amount spent advertising

Question 2

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).The regression coefficient for the variable Trust Index is -0.07149.The correct interpretation of this value is ________________________ .

A)for companies that give the same average annual bonus, an increase of 10 points on the trust index is associated with a decrease of 0.71% in turnover rate, on average
B)an increase of 10 points on the trust index results in a decrease of 7.1% in turnover rate
C)holding average annual bonus constant, increasing the trust index by 10 points will decrease the turnover rate by 7.1%
D)for companies that give the same average annual bonus, an increase of 10 points on the trust index is associated with an increase of 0.71% in turnover rate, on average
E)None of the above.

Answer 2

for companies that give the same average annual bonus, an increase of 10 points on the trust index is associated with a decrease of 0.71% in turnover rate, on average

Question 3

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).Using the output below, and a significance level of α = .01, we can conclude that ________________________ .

A)the multiple regression model is significant overall
B)trust Index is a significant independent variable in explaining turnover rate
C)average Annual Bonus is a significant independent variable in explaining turnover rate
D)the predictor Constant is a significant independent variable in explaining turnover rate
E)All of these.

Answer 3

the multiple regression model is significant overall

Question 4

Using the output below, calculate the predicted turnover rate for a company having a trust index score of 70 and an average annual bonus of $6500.

A)3.5%
B)4.2%
C)1.9%
D)2.4 %
E)None of the above.

Question 5

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.The regression coefficient for Advertising was found to be +3.0926, which of the following is the correct interpretation for this value?

A)While price negatively affects the number of Sony Bravia LCD TV's sold, an increase in the amount of money spent on advertising will result in at least 3 additional TV's sold.
B)At a given price, increasing the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 units, on average.
C)A one percent increase in the amount spent on advertising the Sony Bravia over the previous quarter will increase sales by 3.0926 units, on average.
D)At a given price, a one percent increase in the amount spent on advertising the Sony Bravia over the previous quarter is associated with an increase in sales of 3.0926 units, on average.
E)None of the above.

Question 6

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.The plot of residuals versus predicted values is shown below.What does the residual plot suggest?

A)The Linearity condition is not satisfied.
B)There is an extreme departure from normality.
C)The variance is not constant.
D)The presence of a couple of outliers.
E)The plot thickens from left to right.

Question 7

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.Using the output below, estimate the number of units sold on average at a store that sells the Sony Bravia for $2199 and spends 10% of its advertising budget on the product.

A)53.94 units
B)120 units
C)66.54 units
D)90.34 units
E)None of the above.

Question 8

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.Use the output shown below, calculate the amount of variability in Sales is explained by the estimated multiple regression model.

A)15.57%
B)6.90%
C)84.43%
D)29%
E)None of the above.

Question 9

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).According to the output is shown below, what is the estimated multiple regression model?

A)Turnover Rate = 0.01966 Trust Index + 0.0001481 Average Bonus
B)Turnover Rate = 0.7826 + 0.01966 Trust Index + 0.0001481 Average Bonus
C)Turnover Rate = 12.1005 - 0.07149 Trust Index - 0.0007216 Average Bonus
D)Turnover Rate = 12.1005 + 0.07149 Trust Index + 0.0007216 Average Bonus
E)Turnover Rate = 15.46 - 3.64 Trust Index - 4.87 Average Bonus

Question 10

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).Based on the output, how much of the variability in Turnover Rate is explained by the estimated multiple regression model?

A)78.3%
B)79.6%
C)12.1%
D)95.4%
E)None of the above.

Question 11

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).The regression coefficient associated with Average Bonus was found to be
-0)0007216.The correct interpretation of this value is ________________________ .

A)holding the trust index constant, increasing the average annual bonus by $100 will decrease the turnover rate by 7.2%
B)for companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with a decrease in turnover rate of 7.2%, on average
C)for companies that have the same score on the trust index, increasing the average annual bonus by $100 is associated with an increase in turnover rate of 7.2%, on average
D)an increase of $100 in the average annual bonus decreases the turnover rate by 7.2%
E)None of the above.

Question 12

A sample of 33 companies was randomly selected and data collected on the average annual bonus, turnover rate (%), and trust index (measured on a scale of 0 - 100).In a multiple regression estimating turnover rate using average bonus and trust index, what is the correct null hypotheses for testing the regression coefficient of Trust Index?

A)β _TI ≠0
B)T _TI >0
C)β _TI =0
D)β _TI <0
E)T _TI ≤ 0

Question 13

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.The regression coefficient for Price was found to be -0.03055, which of the following is the correct interpretation for this value?

A)Increasing the price of the Sony Bravia by $100 will result in at least 3 fewer TV's sold.
B)For a given amount spent on advertising, a $100 increase in price of the Sony Bravia is associated with a decrease in sales of 3.055 units, on average.
C)Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by 3.055 units.
D)Holding the amount spent on advertising constant, an increase of $100 in the price of the Sony Bravia will decrease sales by .03%.
E)None of the above.

Question 14

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.Based on the output below, which of the following statements is/are true?

A)The multiple regression model is significant overall.
B)Selling Price is a significant independent variable in explaining Bravia sales.
C)Amount Spent on Advertising is a significant independent variable in explaining Bravia sales.
D)Only A and B
E)A, B and C

Question 15

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.According to the output below, the calculated t-statistic to determine if amount spent on advertising is a significant independent variable in explaining Sony Bravia sales is ________________________ .

A)3.60
B)-3.04
C)8.40
D)10.61
E)None of the above

Question 16

A sample of 33 companies was randomly selected and a multiple regression model was performed using average annual bonus and trust index (scale of 0 - 100) to explain turnover rate.According to the output below, what is the F statistic to determine the overall significance of the estimated is ________________________ .

A)58.64
B)1.497
C)131.36
D)78.3
E)2.24

Question 17

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.The correct null and alternative hypotheses for testing the regression coefficient of Price is _______________________ .

A)H_0: β_P ≠ 0 vs.H_{A :} β _P = 0
B)H_0: β_P ≥ 0 vs.H_{A :} β _P < 0
C)H_0: β_P ≤ 0 vs.H_{A :} β _P > 0
D)H_0: β_P = 0 vs.H_{A :} β _P ≠ 0
E)H_0: The regression is not significant vs.H_A: the regression is significant

Question 18

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales.Using the output below, calculated F statistic to determine the overall significance of the estimated multiple regression model is ________________________ .

A)10.61
B)73.23
C)112.5
D)3.60
E)None of the above