SME_8e_Ch_04_Section_4 - 1 CHAPTER 4 SECTION 4: NUMERICAL...

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Unformatted text preview: 1 CHAPTER 4 SECTION 4: NUMERICAL DESCRIPTIVE TECHNIQUES MULTIPLE CHOICE 216. Assuming a linear relationship between X and Y , if the coefficient of correlation ( r ) equals - 0.80, this means that: a. there is very weak correlation. b. the slope b 1 is = - 0.80. c. the value of X is always greater than the value of Y. d. None of these choices are true. ANS: B PTS: 1 REF: SECTION 4.4 217. The slope b 1 of the least squares line y 8 = b + b 1 x represents the: a. predicted value of Y when X = 0. b. estimated average change in Y per unit change in X. c. predicted value of Y. d. variation around the regression line. ANS: B PTS: 1 REF: SECTION 4.4 218. Generally speaking, if two variables are unrelated (as one increases, the other shows no pattern), the covariance will be: a. a large positive number. b. a large negative number. c. a positive or negative number close to zero. d. None of these choices. ANS: C PTS: 1 REF: SECTION 4.4 219. If the correlation coefficient r = 1.00, then all the observations must fall exactly on: a. a straight line with a slope that equals 1.00. b. a straight line with a negative slope. c. a straight line with a positive slope. d. a horizontal straight line with a zero slope. ANS: C PTS: 1 REF: SECTION 4.4 220. The Y-intercept, b , of the least squares line y 8 = b + b 1 x represents the: a. estimated average value of Y when X = 0. b. estimated average change in Y per unit change in X. c. predicted value of Y. d. variation around the sample regression line. ANS: A PTS: 1 REF: SECTION 4.4 2 221. A perfect straight line sloping downward would produce a correlation coefficient equal to: a. +1.0 b.- 1.0 c. 0.0 d. Cannot tell from the information given. ANS: B PTS: 1 REF: SECTION 4.4 222. The least squares method minimizes which of the following sum of squares? a. ( y 8 i- y ) 2 i = 1 n b. ( y i- y 8 i ) 2 i = 1 n c. ( y i- y ) 2 i = 1 n d. All of these choices are true ANS: B PTS: 1 REF: SECTION 4.4 223. Which of the following is a property of r , the coefficient of correlation? a. r always lies between 0 and 1. b. r has no units. c. If you switch the values of X and Y , the sign of r changes. d. All of these choices are true. ANS: B PTS: 1 REF: SECTION 4.4 224. Which of the following is a property of the slope, b 1 ? a. The slope equals one if X and Y have the same variance....
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This note was uploaded on 09/28/2010 for the course FINOPMGT 250 taught by Professor Kumar during the Spring '10 term at University of Massachusetts Boston.

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SME_8e_Ch_04_Section_4 - 1 CHAPTER 4 SECTION 4: NUMERICAL...

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