Question 1

The regression equation to predict the job performance of new hires based on age, GPA and gender (female = 1 and male = 0) is Job Performance = -60.8 + 4.80.Age + 1.44 GPA + 9.06 Gender. Which of the following is the correct
Interpretation for the regression coefficient of Gender?

Accepted Answer

A)  The regression coefficient indicates that the job performance score for a female Will, on average, be 9.06 points higher than for males of the same age and GPA. 
B)  The regression coefficient indicates that the job performance score for a female Will, on average, be 9.06 points lower than for males of the same age and GPA. 
C)  The regression coefficient indicates that the job performance score for a female Will, on average, be 9.06 times higher than for males. 
D)  The regression coefficient indicates that the job performance score for a female Will, on average, be 9.06 times lower than for males. 
E)  The regression coefficient is not significantly different from zero.

Question 2

Based on the regression output shown below, which of the following statements is true?
The regression equation is
Price (cents) = 128 + 1.08 Time
Predictor Coef SE Coef T P
Constant 128.112 2.092 61.25 0.000
Time 1.0782 0.1407 7.66 0.000
S = 5.07299 R-Sq = 71.9%
Durbin-Watson statistic = 0.244822

Accepted Answer

A)  The regression slope is significantly different from zero. 
B)  The model explains 71.9% of the variability in heating oil prices. 
C)  The linear model is appropriate. 
D)  Both A and B. 
E)  All of the above.

Question 3

In a data warehouse, which of the following variable(s) is/are transactional?

Accepted Answer

A)  Gender. 
B)  Homeowner (Yes or No). 
C)  Purchase price of a vehicle. 
D)  Both B and C. 
E)  None of the above.

Question 4

Data were collected for a sample of 12 pharmacists to determine if years of experience and salary are related. A regression was run with the dependent variable Salary (thousands of dollars) and independent variable Experience (years). Suppose The P-value associated with the calculated t-statistic is < .001. At the .05 level of Significance we

Accepted Answer

A)  reject the null hypothesis. 
B)  do not reject the null hypothesis. 
C)  conclude that years of experience is significant in explaining pharmacists' salary. 
D)  Both A and C. 
E)  Both B and C.

Question 5

According to the partial regression analysis output below, what is the t-statistic to test whether the regression slope is significant? Regression Analysis: Tourism (\$bil1) versus visitors (mill)
The regression equation is: Tourism $( \$ \mathrm { bill } ) = 21.5 + 0.295$ Visitors (mill)
$\begin{array} { l r r } \text { Predictor } & \text { Coef } & \text { SE Coef } \ \text { Constant } & 21.464 & 3.462 \ \text { Visitors (mill) } & 0.29497 & 0.07917 \ S = 2.58307 & R - S q = 63.4 \% \end{array}$

Accepted Answer

A)  6.20 
B)  13.88 
C)  0.07917 
D)  2.58307 
E)  3.73

Question 6

Suppose data mining is used to determine whether or not a customer would purchase a hybrid vehicle. In data mining this is referred to as what type of problem?

Accepted Answer

A)  Regression. 
B)  Transactional. 
C)  Unsupervised. 
D)  Classification. 
E)  None of the above.

Question 7

According to the results below, what is the correlation between stock price and EPS? 
The regression equation is: Stock Price $= - 0.49 + 14.8 \mathrm { EPS }$
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \ \text { Constant } & - 0.486 & 4.032 & - 0.12 & 0.906 \ \text { EPS } & 14.8129 & 0.9437 & 15.70 & 0.000 \end{array}$
$$\mathrm { S } = 7.63235 \mathrm { R } - \mathrm { Sq } = 95.0 \%$$

Accepted Answer

A)  -0.975 
B)  0.906 
C)  0.950 
D)  0.975 
E)  Cannot be determined from the information given.

Question 8

A regression model: PE = 8.04 + 0.747 Growth Rate + 0.0516 Profit Margin + 2.09 Green was developed to predict a firm's Price-Earnings Ratio (PE) using
Growth Rate, Profit Margin, and whether the firm is Green (1 = Yes, 0 = No). Which
Of the following is the correct interpretation for the regression coefficient of Green?

Accepted Answer

A)  The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 higher than a firm that is not green with the same growth rate
And profit margin. 
B)  The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 lower than a firm that is not green with the same growth rate
And profit margin. 
C)  The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 times higher than a firm that is not green with the same
Growth rate and profit margin. 
D)  The regression coefficient indicates that the PE ratio of a firm that is green will,
On average, be 2.09 times lower than a firm that is not green with the same growth
Rate and profit margin. 
E)  The regression coefficient is not significantly different from zero.

Question 9

Based on the output below from regression analysis performed to develop a model for predicting a firm's Price-Earnings Ratio (PE) based on Growth Rate, Profit Margin,
And whether or not the firm is Green (1 = Yes, 0 = No), we can conclude (α = .05)
That The regression equation is
$\mathrm { PE } = 8.04 + 0.757$ Growth Rate $+ 0.0516$ Profit Margin $+ 2.09$ Green?
$\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \ \text { Constant } & 8.043 & 1.570 & 5.12 & 0.000 \ \text { Growth Rate } & 0.7569 & 0.1355 & 5.59 & 0.000 \ \text { Profit Margin } & 0.05162 & 0.03239 & 1.59 & 0.139 \ \text { Green? } & 2.0900 & 0.7945 & 2.63 & 0.023 \ \mathrm {~S} = 1.12583 & \mathrm { R } - \mathrm { Sq } = 87.8 \end{array}$

Accepted Answer

A)  Growth Rate is not a significant variable in predicting a firm's PE ratio. 
B)  Profit Margin is a significant variable in predicting a firm's PE ratio. 
C)  The regression coefficient associated with Growth Rate is not significantly
Different from zero. 
D)  Whether or not a firm is Green is significant in predicting its PE ratio. 
E)  The regression coefficient associated with Profit Margin is significantly different
From zero.

Question 10

Suppose data mining is used to determine how much a customer spends annually on energy efficient products. In data mining this is referred to as what type of problem?

Accepted Answer

A)  Regression. 
B)  Transactional. 
C)  Unsupervised. 
D)  Classification. 
E)  None of the above.

Question 11

A least squares estimated regression line has been fitted to a set of data and the resulting residual plot is shown. Which is true?

Accepted Answer

A)  The linear model is appropriate. 
B)  The linear model is poor because some residuals are large. 
C)  The linear model is poor because the correlation is near 0. 
D)  A curved model would be better. 
E)  A transformation of the data is required.

Question 12

In a data warehouse, which of the following variables is/are demographic?

Accepted Answer

A)  Age. 
B)  Occupation. 
C)  Amount spent on organic food products. 
D)  Both A and B. 
E)  All of the above.

Question 13

According to the residual plot for a linear regression model shown to the right, the linear model

Accepted Answer

A)  okay because the same number of points is above the
Line as below it. 
B)  okay because the association between the two
Variables is fairly strong. 
C)  no good because the correlation is near 0. 
D)  no good because some residuals are large. 
E)  no good because of the curve in the residuals.

Question 14

From the plots of residuals shown below, which assumption appears to be violated?

Accepted Answer

A)  Equal Variance 
B)  Linearity 
C)  Normality 
D)  Independence 
E)  None; all appear to be satisfied.

Question 15

Disparate databases that include demographic and transactional variables merged together are referred to as

Accepted Answer

A)  Data storage bins 
B)  Data mines 
C)  OLAP 
D)  CRISP 
E)  Data warehouses

Question 16

Regression analysis was performed to develop a model for predicting a firm's Price- Earnings Ratio (PE) based on Growth Rate, Profit Margin, and whether or not the
Firm is Green (1 = Yes, 0 = No). Based on the F-statistic of 26.48 which has a p-value
Of 0.000, we can conclude at α = .05 that

Accepted Answer

A)  the regression equation is not significant. 
B)  all independent variables in the model are significant. 
C)  the regression equation is significant. 
D)  none of the independent variables in the model are significant. 
E)  both B and C.

Question 17

Below is a list of a few variables for which data were collected from various telecommunication companies. On the line to the right of each variable, identify whether it is transactional (T) or a demographic (D). 
1. Type of cell phone plan.____
2. Number of residents in household._____
3. Subscription to international channels.___
4. Zip code.____
5. Monthly electricity usage.____

Accepted Answer

The answer of Below is a list of a few...

Question 18

Use the following information 
Suppose data mining is employed on supermarket chains and travel industry dataBwarehouse in order to answer the following questions. On the line to the right, indicate whether these involve a classification (C) or regression (R) problem.
-How much a customer spends annually on international specialty food items? ____

Accepted Answer

The answer of Use the following information 
Suppose data mining...

Question 19

Which statement about influential points is true?

Accepted Answer

A)  Removal of an influential point changes the regression line. 
B)  A high leverage point is always influential. 
C)  Influential points have large residuals. 
D)  All outliers are influential. 
E)  None of these.

Question 20

Use the following information 
Suppose data mining is employed on telecommunication company data warehouse in order to answer the following questions. On the line to the right of each, indicate whether these involve a classification (C) or regression (R) problem.
-How much does a customer spend on all household communication-related
expenditures? ____

Accepted Answer