TruetFalse Questions: Question #2 nal = 20 l. A dependent variable is the variable that we wish to predict or explain in a regression Ill. 11. model. 1When a correlation is fomd between a pair of variables, this always means that there is a direct cause and effect relationship between the variables. A correlation of 419 indicates a weal: linear relationship between the variables. If the test statistic for a chisquare test of independence is larger than the critical value, the null hypothesis should be rejected A report recently published in a major business periodical stated that the average salary for female managers is less than $5,l}_ If we were interested in testing this, the following null and alternative hypotheses would be established: Ho : 11 E Still-DD Ho : u a: 5U, Data are oonsidered to be rightskewed when the mean lies to the right of the median. A regression analysis between sales (in $101313} and advertising {in 5) resulted in the following least squares line: y = ll + 51:. This implies that an increase of $1 in advertising is expected to result in an increase of $65 in sales. Using the standard normal curve, the area between: = l_'l} and z = 1.54:} is UJT45. Generally, it is possible to appropriately test null and alternative hypotheses using the test statistic approach and reach a diermt conclusion than would be reached if the palvalue approach were used. Residuals are the deviations between the observed values of y and their predicted values 5' _ Multiple regression is the process of using several independeth variables to predict a number of dependent variables