Deck 11: Simple Regression

Question 1

Determine the slope of the least squares regression line.

A)10.48
B)18.05
C)3.57
D)0.46

Answer 1

0.46

Question 2

If the null H₀ : p = 0 hypothesis is true and the random variables have a joint normal distribution,then the random variable - which is used to test the hypothesis that there is no linear association in the population between a pair of random variables-follows the:

A)degenerate distribution.
B)Student's t distribution.
C)chi-square distribution.
D)distribution.

Answer 2

Student's t distribution.

Question 3

Which of the following will tend to make it more likely to reject H₀ : β₁ = 0?

A)increasing SSE
B)decreasing the absolute value of b₁
C)increasing the variance of X
D)decreasing sample size

Answer 3

increasing the variance of X

Question 4

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The below sample data set shows the relationship between two variables.

What is the value of cov(x,y)?

A)4.925
B)8.000
C)9.667
D)6.679

Question 5

Determine the least squares regression line.

A)
= 0.46 - 3.57x
B)
= 0.46 + 3.57x
C)
= 3.57 + 0.46x
D)
= 3.57 - 0.46x

Question 6

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
Which of the following is the value of "A"?

A)0.195
B)0.805
C)0.442
D)0.67

Question 7

A regression analysis between sales (in $1000)and advertising (in $)resulted in the following least squares line: = 80,000 + 4x.This implies that:

A)an increase of $1 in advertising is expected to result in an increase of $4 in sales.
B)an increase of $4 in advertising is expected to result in an increase of $4,000 in sales.
C)an increase of $1 in advertising is expected to result in an increase of $80,000 in sales.
D)an increase of $1 in advertising is expected to result in an increase of $4,000 in sales.

Question 8

You want to explore the relationship between the grades students receive on their first two exams.For a sample of 15 students,you find a correlation coefficient of 0.47.What is the value of the test statistic for testing H₀ : p = 0 vs.H₁ : p > 0?

A)2.80
B)1.06
C)1.39
D)1.92

Question 9

The value of the F-test statistic is:

A)1.50
B)18.05
C)12.05
D)3.47

Question 10

The value of SSR is:

A)18.05
B)10.48
C)28.53
D)0)010

Question 11

Which of the following is the value of SST?

A)18.05
B)10.48
C)28.53
D)0)010

Question 12

Calculate the value of SSE.

A)18.05
B)10.48
C)28.53
D)0)010

Question 13

The y-intercept of the least squares regression line is:

A)10.48
B)18.05
C)3.57
D)0.46

Question 14

Determine the value of the Student's t statistic.

A)1.34
B)0.80
C)2.67
D)3.47

Question 15

Compute the value of the coefficient of determination.

A)3.47
B)2.67
C)0.80
D)0.63

Question 16

The value of the correlation coefficient is:

A)0.633
B)0.795
C)1.266
D)-0.633

Question 17

Calculate the standard error of the estimate.

A)1.22
B)3.47
C)2.67
D)63.3

Question 18

The value of the standard error of the slope coefficient is:

A)1.34
B)0.45
C)0.13
D)2.67

Question 19

Test H₀ : β = 1 vs.H₁ : β < 1 if the following regression information are given: b₁ = 1.39,s = 0.18,and n = 30.

A)reject H₀ for α = 0.01
B)reject H₀ for α = 0.10
C)reject H₀ for α = 0.005
D)unable to reject H₀ for α = 0.025

Question 20

Compute the value of the model error variance.

A)18.05
B)1.50
C)10.48
D)0.63

Question 21

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
Compute the value of "D."

A)9.35
B)3.06
C)9.82
D)22.96

Question 22

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You want to explore the relationship between the grades students receive on their first quiz (x)and their first exam (y).The first quiz and test scores for a sample of eight students reveal the following summary statistics:
The sample correlation coefficient is:

A)0.691
B)0.806
C)0.749
D)0.209

Question 23

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
In order to estimate with 95% confidence the expected value of y in a simple linear regression problem,a random sample of 10 observations is taken.Which of the following t-table values listed below would be used?

A)2.228
B)1.860
C)1.812
D)2.306

Question 24

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
What is the value of "C"?

A)172.25
B)162.42
C)140.03
D)182.99

Question 25

In a simple regression problem,the following data is shown below: Standard error of estimate s_e = 18,n = 10.
What is the error sum of squares?

A)2916
B)2592
C)1800
D)3240

Question 26

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
What is the approximate value of "F"?

A)0.025
B)0.05
C)0.10
D)0.01

Question 27

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You want to explore the relationship between the scores students receive on their first quiz and their first exam.You believe that there is a positive correlation between the two scores.
What is the appropriate decision rule?

A)reject H₀ if r(n - 2)/ (1 - r²)> t_n-2,α
B)reject H₀ if r
/

> t_n-2,α
C)reject H₀ if r(n - 2)/
> t_n-2,α
D)reject H₀ if r(n - 2)/
> t_n-2,α/2

Question 28

Develop a 90% confidence interval for the population slope if the following regression information are given: b₁= 23.5,p-value = 0.01,and n = 25.

A)23.5 ± 17.35
B)23.5 ± 15.35
C)23.5 ± 16.35
D)23.5 ± 14.35

Question 29

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You want to explore the relationship between the grades students receive on their first quiz (x)and their first exam (y).The first quiz and test scores for a sample of eight students reveal the following summary statistics:
What is the covariance between x and y?

A)4.83
B)7.11
C)50.50
D)58.92

Question 30

What would be the dollar value of an accident involving a 25-year-old driver?

A)$11,836.56
B)$10,795.47
C)$13,372.58
D)$12,474.90

Question 31

Which of the following statements is the best explanation of the R²?

A)3)5% of the accident damage can be explained by the age of the driver.
B)3)5% of the variation in accident damage can be explained by variation in the age of the driver.
C)3)5% of the coefficients,t-stat,and p-value can be explained by the age of the driver.
D)3)5% of the total error can be explained by the SSE.

Question 32

How would you best explain the y-intercept in this situation?

A)For each additional 1-year increase in the age of the driver,we would expect damage to increase by $10,726.
B)For each additional 1-year increase in the age of the driver,we would expect damage to increase by $70.
C)It makes no sense to explain the intercept in this situation,since we cannot have a driver with an age of zero.
D)The average amount of damage was $10,726.

Question 33

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You want to explore the relationship between the grades students receive on their first quiz (x)and their first exam (y).The first quiz and test scores for a sample of eight students reveal the following summary statistics:
Determine the value of the test statistic for testing H₀ : p = 0

A)2.53
B)2.34
C)2.20
D)2.77

Question 34

The vertical spread of the data points about the regression line is measured by the:

A)regression coefficient.
B)y-intercept.
C)standard error of estimate.
D)F-ratio.

Question 35

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
For a random sample of 263 professionals,the correlation between their age and their income was found to be 0.17.You are interested in testing the null hypothesis that there is no linear relationship between these two variables against the alternative that there is a positive relationship.
What is the most accurate statement that can be made about the p-value for this test?

A)p-value < 0.005
B)p-value < 0.01
C)p-value < 0.025
D)p-value < 0.05

Question 36

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
For a random sample of 263 professionals,the correlation between their age and their income was found to be 0.17.You are interested in testing the null hypothesis that there is no linear relationship between these two variables against the alternative that there is a positive relationship.
What is the value of the test statistic?

A)3.669
B)2.756
C)2.787
D)6.785

Question 37

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
You want to explore the relationship between the scores students receive on their first quiz and their first exam.You believe that there is a positive correlation between the two scores.
What are the most appropriate null and alternative hypotheses regarding the population correlation?

A)H₀ : p = 0 and H₁ : p ≠ 0
B)H₀ : p = 0 and H₁ : p < 0
C)H₀ : p = 0 and H₁ : p > 0
D)H₀ : p = 0 and H₁ : p < 1

Question 38

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
What is the value of "B"?

A)2.58
B)6.67
C)3.75
D)3.95

Question 39

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The manager of a used-car dealership is very interested in the resale price of used cars.The manager feels that the age of the car is important in determining the resale value.He collects data on the age and resale value of 15 cars and runs a regression analysis with the value of the car (in thousands of dollars)as the dependent variable and the age of the car (in years)as the independent variable.Unfortunately,the printout had lost some of the results,identified by"A" through"F".The partial results left are displayed below.
Calculate the value of "E."

A)1.136
B)-1.136
C)0.278
D)-0.278

Question 40

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
An insurance company analyst is interested in analyzing the dollar value of damage in automobile accidents.She collects data from 115 accidents,and records the amount of damage as well as the age of the driver.The results of her regression analysis are listed below.
SUMMARY OUTPUT
The regression equation is:

A)y = 10725.802 + 69.964x
B)y = 114 + 113x
C)y = 1535.215 + 34.625x
D)y = 113 + 114x

Question 41

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
The slope of the regression line of hours on income is:

A)0.6337
B)0.9482
C)0.5541
D)0.6475

Question 42

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
The standard deviation of the households' monthly income is:

A)12.817
B)14.667
C)15.679
D)11.990

Question 43

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider a random sample of 25 observations of two variables x and y.The following summary statistics are available:
= 43.2,
= 195.6,
= 1357.2,
= 1253.4,and
= 4843.6.
Which of the following is the slope of the sample regression line?

A)0.43
B)54.85
C)0.978
D)3.57

Question 44

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose we have the following information from a simple regression:
b₀= 117.4,b₁ = -14.39,s
= 0.18,s
= 0.18,n = 300,
= 4.3,SST = 17,045,and SSE = 12,053.
Which of the following would most likely represent a 95% confidence interval for the estimate of y,given x = ?

A)55.52 ± 0.72
B)55.52 ± 12.42
C)55.52 ± 40.4
D)55.52 ± 18.63

Question 45

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Compute the error sum of squares.

A)116.399
B)458.962
C)712.082
D)688.188

Question 46

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose we have the following information from a simple regression:
b₀= 117.4,b₁ = -14.39,s
= 0.18,s
= 0.18,n = 300,
= 4.3,SST = 17,045,and SSE = 12,053.
What is the coefficient of determination?

A)0.2929
B)0.7122
C)0.5408
D)0.4671

Question 47

The residual is defined as the difference between the actual value of:

A)y and the estimated value of y.
B)x and the estimated value of x.
C)y and the estimated value of x.
D)x and the estimated value of y.

Question 48

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
What is the value of the coefficient of determination?

A)0.637
B)0.575
C)0.601
D)0.664

Question 49

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Calculate the sample covariance between x and y.

A)136.313
B)155.786
C)181.750
D)159.032

Question 50

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
What is the y-intercept of the regression line of hours on income?

A)64.23
B)36.43
C)46.23
D)23.46

Question 51

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider a random sample of 25 observations of two variables x and y.The following summary statistics are available:
= 43.2,
= 195.6,
= 1357.2,
= 1253.4,and
= 4843.6.
Determine the intercept of the regression line.

A)2.038
B)41.43
C)3.57
D)54.86

Question 52

Which of the following will not tend to increase the standard error of the slope?

A)increase the sample size
B)decrease the variation in x
C)decrease the SSE
D)decrease in the standard error of the estimate

Question 53

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose we have the following information from a simple regression:
b₀= 117.4,b₁ = -14.39,s
= 0.18,s
= 0.18,n = 300,
= 4.3,SST = 17,045,and SSE = 12,053.
Determine the sample mean of y.

A)103.08
B)179.28
C)55.52
D)74.37

Question 54

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Determine the regression sum of squares.

A)691.038
B)1033.601
C)461.812
D)437.918

Question 55

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Determine the estimate of the variance of the population model error.

A)118.347
B)114.698
C)19.399
D)76.494

Question 56

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Compute the standard error of the slope of the regression line of hours on income.

A)0.256
B)0.234
C)0.211
D)0.269

Question 57

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Determine the sample correlation coefficient between x and y.

A)0.678
B)0.791
C)0.905
D)0.775

Question 58

A regression analysis between weight (y in pounds)and height (x in inches)resulted in the following least squares line: = 120 + 5x.This implies that if the height is increased by 1 inch,the weight is expected to:

A)increase by 1 pound.
B)decrease by 1 pound.
C)decrease by 120 pounds.
D)increase by 5 pounds.

Question 59

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
What is the standard deviation of the number of hours households spend connected to the internet each month?

A)12.817
B)14.667
C)15.679
D)11.990

Question 60

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Suppose we have the following information from a simple regression:
b₀= 117.4,b₁ = -14.39,s
= 0.18,s
= 0.18,n = 300,
= 4.3,SST = 17,045,and SSE = 12,053.
The correlation coefficient is:

A)-0.6834
B)0.5412
C)0.6834
D)-0.5412

Question 61

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
An indication of no linear relationship between two variables would be a:

A)coefficient of determination equal to 1
B)coefficient of determination equal to -1
C)coefficient of correlation equal to 0
D)coefficient of correlation equal to -1

Question 62

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
Determine the slope of the sample regression line.

A)3.71
B)1.24
C)4.60
D)3.92

Question 63

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
Determine the value of residual sum of squares.

A)10,945.2
B)11,759.9
C)10,130.5
D)36,935.8

Question 64

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
What is the value of total sum of squares?

A)48,745.2
B)46,538.7
C)50,292.4
D)52,644.8

Question 65

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
Calculate the standard error of estimate.

A)0)66
B)0)76
C)0)85
D)0)61

Question 66

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
For the given data,which of the following is the result of the hypothesis test?

A)Since the test statistic equals 4.439 and the critical value equals 1.645,we reject the null hypothesis and assume there is a positive correlation between the variables.
B)Since the test statistic equals 4.113 and the critical value equals -1.645,we fail to reject the null hypothesis and assume there is no correlation between the variables.
C)Since the test statistic equals 3.305 and the critical value equals 2.447,we reject the null hypothesis and assume there is a correlation between the variables.
D)Since the test statistic equals 3.707 and the critical value equals 1.943,we reject the null hypothesis and assume there is a positive correlation between the variables.

Question 67

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
Which of the following is the value of the sample correlation?

A)0.696
B)0.834
C)0.645
D)0.803

Question 68

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
If the regression line = 3 + 2x has been fitted to the data points (4,8),(2,5),and (1,2),the residual sum of squares will be:

A)10
B)15
C)13
D)22

Question 69

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
Determine the intercept of the sample regression line.

A)11.17
B)64.30
C)92.40
D)13.74

Question 70

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
What is the value of the test statistic for testing H₀ : ρ = 0 vs.H_a : ρ >0?

A)4.439
B)4.113
C)3.707
D)3.305

Question 71

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
The value of mean square error is:

A)1678.9
B)1,554.25
C)1,493.63
D)1,407.35

Question 72

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
The total degrees of freedom is:

A)21
B)22
C)23
D)24

Question 73

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
Correlation analysis is used to determine the:

A)strength of the relationship between x and y.
B)least squares estimates of the regression parameters.
C)predicted value of y for a given value of x.
D)forecast value of a particular dependent variable.

Question 74

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
For the given data,what is/are the critical value(s)for testing the hypotheses at 0.05 level of significance?

A)+1.943
B)± 2.447
C)+1.645
D)-1.645

Question 75

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
In a regression problem,a coefficient of determination 0.90 indicates that:

A)90% of the y values are positive.
B)90% of the variation in y can be explained by the regression line.
C)90% of the x values are equal.
D)90% of the variation in x can be explained by the regression line.

Question 76

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
A regression analysis between sales (in $1000)and advertising (in $100)resulted in the following least squares line: = 75 + 5x.This implies that if advertising is $800,then the predicted amount of sales (in dollars)is:

A)$4075
B)$115,000
C)$164,000
D)$179,000

Question 77

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 8 households was asked about their monthly income (x)and the number of hours they spend connected to the internet each month (y).The data yield the following statistics:
,
,
,
,
Which of the following is the value of the test statistic for testing H₀ : β₁ = 0 vs.H₁ : β₁ ≠ 0?

A)2.36
B)3.01
C)2.48
D)2.71

Question 78

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
What are the degrees of freedom for residuals?

A)21
B)22
C)23
D)24

Question 79

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
The value of the coefficient of determination is:

A)0.696
B)0.834
C)211.6
D)3.924

Question 80

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales.The manager collects data for the past 24 months and runs a regression of sales on advertising expenditures.The results are presented below but,unfortunately,some values identified by asterisks are missing.
SUMMARY OUTPUT
Determine the regression coefficient of the y-intercept.

A)112.4
B)102.3
C)108.6
D)105.5