# Stat Ch14

Topics: Regression analysis, Linear regression, Least squares Pages: 31 (10344 words) Published: April 30, 2013
CHAPTER 14—SIMPLE LINEAR REGRESSION
MULTIPLE CHOICE 1. value of a. b. c. d. ANS: A 2. a. b. c. d. ANS: A 3. correlation a. b. c. d. ANS: C 4. a. b. c. d. ANS: D 5. The mathematical equation relating the independent variable to the expected value of the dependent variable; that is, E(y) = β0 + β1x, is known as a. regression equation b. correlation equation c. estimated regression equation d. regression model ANS: A 6. a. b. c. d. ANS: C 7. a. b. c. d. In regression analysis, the unbiased estimate of the variance is coefficient of correlation coefficient of determination mean square error slope of the regression equation The model developed from sample data that has the form of is known as regression equation correlation equation estimated regression equation regression model In regression analysis, the model in the form is called regression equation correlation equation estimated regression equation regression model If the coefficient of determination is a positive value, then the coefficient of must also be positive must be zero can be either negative or positive must be larger than 1 The coefficient of determination cannot be negative is the square root of the coefficient of correlation is the same as the coefficient of correlation can be negative or positive In a regression analysis, the error term ε is a random variable with a mean or expected zero one any positive value any value

a. b. c. d. ANS: C 8. a. b. c. d. ANS: B 9. a. b. c. d. ANS: A 10. a. b. c. d. ANS: D 11. a. b. c. d. ANS: C 12. error term ε? a. b. c. d. ANS: A The standard error is the

coefficient of correlation coefficient of determination mean square error slope of the regression equation

The interval estimate of the mean value of y for a given value of x is prediction interval estimate confidence interval estimate average regression x versus y correlation interval

The interval estimate of an individual value of y for a given value of x is prediction interval estimate confidence interval estimate average regression x versus y correlation interval

t-statistic squared square root of SSE square root of SST square root of MSE

If MSE is known, you can compute the r square coefficient of determination standard error all of these alternatives are correct

In regression analysis, which of the following is not a required assumption about the The expected value of the error term is one. The variance of the error term is the same for all values of X. The values of the error term are independent. The error term is normally distributed.

13. A regression analysis between sales (Y in \$1000) and advertising (X in dollars) resulted in the following equation = 30,000 + 4 X The above equation implies that an a. b. c. d. increase of \$4 in advertising is associated with an increase of \$4,000 in sales increase of \$1 in advertising is associated with an increase of \$4 in sales increase of \$1 in advertising is associated with an increase of \$34,000 in sales increase of \$1 in advertising is associated with

a. b. c. d. ANS: D

increase of \$4 in advertising is associated with an increase of \$4,000 in sales increase of \$1 in advertising is associated with an increase of \$4 in sales increase of \$1 in advertising is associated with an increase of \$34,000 in sales increase of \$1 in advertising is associated with an increase of \$4,000 in sales

14. Regression analysis is a statistical procedure for developing a mathematical equation that describes how a. one independent and one or more dependent variables are related b. several independent and several dependent variables are related c. one dependent and one or more independent variables are related d. None of these alternatives is correct. ANS: C 15. In a simple regression analysis (where Y is a dependent and X an independent variable), if the Y intercept is positive, then a. there is a positive correlation between X and Y b. if X is increased, Y must also increase c. if Y is increased, X must also...