1) A regression equation was developed to explore the relationship between advertising expense (X) and profits (Y). The data used to created the equation had advertising expense in hundreds, and profits in hundred thousands. The equation is: Profit = 12 + 0.8*Ad Expense If in October you have a budget of $2,200 for advertising, what is your estimate of profits? 

2) When using regression analysis for descriptive purposes, which of the following is of importance? 

A. The size of the regression slope coefficient 

B. The sign of the regression slope coefficient 

C. The standard error of the regression slope coefficient 

D. All of these 

3) Which of the following is a correct interpretation for the regression slope coefficient? 

A. For a one-unit change in y, we can expect the value of the independent variable to change by b1?units on average. 

B. For each unit change in x, the dependent variable will change by b1?units. 

C. The average change in y of a one-unit change in x will be b1?units. 

D. The average change in x of a one-unit change in y will be b1?units. 

4) Which of the following statements is true in simple linear regression? 

A. The sign (+ or - ) for the slope does not help determine the direction of relationship between X and Y. 

B. The coefficient of determination tells us what percentage of variability in X is explained by Y. 

C. Lower values of R2 are more desirable. 

D. None of the above 

5) Which of the following statements is true with respect to a simple linear regression model? Answer

A. The percent of variation in the dependent variable that is explained by the regression model is equal to the square of the correlation coefficient between the x and y variables. 

B. If the correlation coefficient between the x and y variables is negative, the sign on the regression slope coefficient will also be negative. 

C. If the correlation between the dependent and the independent variable is determined to be significant, the regression model for y given x will also be significant. 

D. All of these are true. 

5) A regression equation was developed to explore the relationship between advertising expense (X) and profits (Y). The data used to created the equation had advertising expense in hundreds, and profits in hundred thousands. The equation is: Profit = 12 + 0.8*Ad Expense If in October you have a budget of $2,200 for advertising, what is your estimate of profits? Answer 

A. ?$2,960,000 

B. $1,772,000 

C. ?$29,600 

D. ?$281,600 

6) Given the data below, one ran the simple regression analysis of Y on X. Y:4 3 4 6 8 X:2 1 4 3 5 The regression equation (the relationship between Y and X) was tested for significance.?

Use Excel to run the analysis. You will find the p-value (significance F) repoted by Excel is 0.1114. Which of the following is true? Answer 

A. significant at the alpha = 1 percent level. 

B. significant at the alpha = 5 percent level. 

C. significant at the alpha = 10 percent level. 

D. not significant at the alpha = 10 percent level.

Answer rating: 100% (QA)

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