Unformatted text preview: based on Model 1.
C. There is no difference in the predictive ability between Model 1 and Model 2.
D. There is not sufficient information to determine which of the two models is superior for
prediction purposes. AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 6
Topic: Coefficient of determination 44. For a given data set, specific value of X, and a confidence level, if all the other factors are
constant, the confidence interval for the mean value of Y will _______ be wider than the
corresponding prediction interval for the individual value of Y.
A. Always
B. Sometimes
C. Never AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 5
Topic: Confidence & prediction intervals 11214 Chapter 01  An Introduction to Business Statistics 45. The strength of the relationship between two quantitative variables can be measured by:
A. The slope of a simple linear regression equation
B. The Y intercept of the simple linear regression equation
C. The coefficient of correlation
D. The coefficient of determination
E. Both C and D above AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 6
Topic: Correlation 46. After plotting the data point s on a scatter diagram, we have observed an inverse
relationship between the independent variable (X) and the dependent variable (Y). Therefore,
we can expect both the sample _____ and the sample _____________ to be negative values.
A. Intercept, slope
B. Slope, coefficient of determination
C. Intercept, correlation coefficient
D. Slope, correlation coefficient
E. Slope, standard error of estimate AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 6
Topic: Correlation 11215 Chapter 01  An Introduction to Business Statistics 47. Regression Analysis The local grocery store wants to predict the daily sales in dollars. The manager believes that
the amount of newspaper advertising significantly affects the store sales. He randomly selects
7 days of data consisting of daily grocery store sales (in thousands of dollars) and advertising
expenditures (in thousands of dollars). The Excel/MegaStat output given above summarizes
the results of the regression model.
What is the estimated simple linear regression equation?
A.
= 7.9682 + 1.667 X
B. = 63.333 + 6.667 X C.
D. = 7.948 + 4.000 X
= 11.547 + 1.667 X E. = 6.667 + 63.333 X AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 4
Topic: Simple Linear Regression 11216 Chapter 01  An Introduction to Business Statistics 48. Regression Analysis The local grocery store wants to predict the daily sales in dollars. The manager believes that
the amount of newspaper advertising significantly affects the store sales. He randomly selects
7 days of data consisting of daily grocery store sales (in thousands of dollars) and advertising
expenditures (in thousands of dollars). The Excel/MegaStat output given above summarizes
the results of the regression model.
At a significance level of .05, test the significance of the slope and state your conclusion.
A. We reject H0 and conclude there is sufficient evidence that dollars spent on advertising is a
useful linear predictor of the grocery store sales.
B. We failed to reject H0 and conclude there is not sufficient evidence that dollars spent on
advertising is a useful linear predictor of the grocery store sales.
C. We failed to reject H0 and conclude there is sufficient evidence that dollars spent on
advertising is a useful linear predictor of the grocery store sales.
D. We reject H0 and conclude that there is sufficient evidence that grocery store sales in
dollars is a useful linear predictor of the dollars spent on advertising.
E. We reject H0 and conclude that there is not sufficient evidence that dollars spent on
advertising is a useful linear predictor of the grocery store sales. AACSB: Analytic
Bloom's: Analysis
Difficulty: Medium
Learning Objective: 4
Topic: Simple Linear Regression 11217 Chapter 01  An Introduction to Business Statistics 49. Regression Analysis The local grocery store wants to predict the daily sales in dollars. The manager believes that
the amount of newspaper advertising significantly affects the store sales. He randomly selects
7 days of data consisting of daily grocery store sales (in thousands of dollars) and advertising
expenditures (in thousands of dollars). The Excel/MegaStat output given above summarizes
the results of the regression model.
What is the value of the simple coefficient of determination?
A. 11.547
B. .762
C. .873
D. 6.6667
E. 1.6667 AACSB: Analytic
Bloom's: Application
Difficulty: Easy
Learning Objective: 6
Topic: Coefficient of determination 11218 Chapter 01  An Introduction to Business Statistics 50. Regression Analysis The local grocery store wants to predict the daily sales in dollars. The manager believes that
the amount of newspaper advertising significantly affects the store sales. He randomly selects...
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 Winter '14
 Frequency, Frequency distribution, Histogram, AACSB, Statistical charts and diagrams

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