Question 1

What is the proportion of explained variation called? ________________

Accepted Answer

Coefficient of determination

Question 2

The smaller the samples,the smaller the standard error of estimate.

Accepted Answer

A) True 
 B)False  False

Question 3

A financial advisor is interested in predicting bond yield based on bond term,i.e. ,one year,two years,etc.What is the dependent variable? ___________________

Accepted Answer

Bond yield

Question 4

A correlation coefficient equal to -1 or +1 indicates perfect correlation.

Accepted Answer

A) True 
 B)False

Question 5

The least squares method assumes the relationship between the dependent and independent variables is linear.

Accepted Answer

A) True 
 B)False

Question 6

Given the least squares regression equation,  = 1202 + 1,133X,when X = 3,what does  equal?

Accepted Answer

A)  5,734
B)  8,000
C)  4,601
D)  4,050

Question 7

Correlation coefficients of -0.91 and +0.91 represent relationships between two variables that have equal strength but different directions.

Accepted Answer

A) True 
 B)False

Question 8

One assumption underlying linear regression is that the Y values are statistically dependent.This means that in selecting a sample,the Y values chosen,for a particular X value,depend on the Y values for any other X value.

Accepted Answer

A) True 
 B)False

Question 9

In regression analysis,there is no difference in the width of a confidence interval and the width of a predictor interval.

Accepted Answer

A) True 
 B)False

Question 10

What is a measure of the scatter of observed values around the regression line called? _______________________________

Accepted Answer

The answer of What is a measure of the scatter...

Question 11

In regression,the difference between the confidence interval and prediction interval formulas is

Accepted Answer

A)  the prediction interval is the square root of the confidence interval.
B)  the addition of "1" to the quantity under the radical sign.
C)  the prediction interval uses  and the confidence interval uses r.
D)  no difference.

Question 12

What type of correlation designates an inverse relationship between two variables? ___________________

Accepted Answer

The answer of What type of correlation designates an inverse...

Question 13

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:  What is the value of the standard error of estimate?

Accepted Answer

A)  9.3104
B)  8.778
C)  8.328
D)  86.68

Question 14

If all the plots on a scatter diagram lie on a straight line,what is the standard error of estimate?

Accepted Answer

A)  -1
B)  +1
C)  0
D)  Infinity

Question 15

What is the general form of the regression equation? _____________

Accepted Answer

The answer of What is the general form of the...

Question 16

What is the purpose of transformations in regression analysis?

Accepted Answer

The answer of What is the purpose of transformations in...

Question 17

What is the purpose of measuring correlation?

Accepted Answer

The answer of What is the purpose of measuring correlation?...

Question 18

A coefficient of correlation,r,close to 0 (say,0.08)shows that the relationship between two variables is quite weak.

Accepted Answer

A) True 
 B)False

Question 19

The two variables in a correlation analysis are called the dependent and response variables.

Accepted Answer

A) True 
 B)False

Question 20

If the coefficient of determination is expressed as a percent,its value is between 0% and 100%.

Accepted Answer

A) True 
 B)False

Exam 13: Linear Regression and Correlation

What is the proportion of explained variation called? ________________

The smaller the samples,the smaller the standard error of estimate.

A financial advisor is interested in predicting bond yield based on bond term,i.e. ,one year,two years,etc.What is the dependent variable? ___________________

A correlation coefficient equal to -1 or +1 indicates perfect correlation.

The least squares method assumes the relationship between the dependent and independent variables is linear.

Given the least squares regression equation, = 1202 + 1,133X,when X = 3,what does equal?

Correlation coefficients of -0.91 and +0.91 represent relationships between two variables that have equal strength but different directions.

One assumption underlying linear regression is that the Y values are statistically dependent.This means that in selecting a sample,the Y values chosen,for a particular X value,depend on the Y values for any other X value.

In regression analysis,there is no difference in the width of a confidence interval and the width of a predictor interval.

What is a measure of the scatter of observed values around the regression line called? _______________________________

In regression,the difference between the confidence interval and prediction interval formulas is

What type of correlation designates an inverse relationship between two variables? ___________________

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: What is the value of the standard error of estimate?

If all the plots on a scatter diagram lie on a straight line,what is the standard error of estimate?

What is the general form of the regression equation? _____________

What is the purpose of transformations in regression analysis?

What is the purpose of measuring correlation?

A coefficient of correlation,r,close to 0 (say,0.08)shows that the relationship between two variables is quite weak.

The two variables in a correlation analysis are called the dependent and response variables.

If the coefficient of determination is expressed as a percent,its value is between 0% and 100%.