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Bloom's: Knowledge
Difficulty: Easy
Learning Objective: 1
Topic: Simple Linear Regression 11203 Chapter 01  An Introduction to Business Statistics 18. A significant positive correlation between X and Y implies that changes in X cause Y to
change.
FALSE AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 6
Topic: Correlation 19. The standard error of the estimate (standard error) is the estimated standard deviation of
the distribution of the independent variable (X) for all values of the dependent variable (Y).
FALSE AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 3
Topic: Simple Linear Regression 20. The estimated simple linear regression equation minimizes the sum of the squared
deviations between each value of Y and the line.
TRUE AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Hard
Learning Objective: 3
Topic: Simple Linear Regression 11204 Chapter 01  An Introduction to Business Statistics
Multiple Choice Questions 21. When using simple linear regression, we would like to use confidence intervals for the
_____ and prediction intervals for the _____ at a given value of x.
A. individual yvalue, mean yvalue
B. Mean yvalue, individual yvalue
C. Slope, mean slope
D. yintercept, mean yintercept AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 5
Topic: Confidence & prediction intervals 22. The point estimate of the variance in a regression model is
A. SSE
B. b0
C. MSE
D. b1 AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 3
Topic: Simple Linear Regression 23. In a simple linear regression analysis, the correlation coefficient (a) and the slope (b)
_____ have the same sign.
A. always
B. sometimes
C. never AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 6
Topic: Correlation 11205 Chapter 01  An Introduction to Business Statistics 24. All of the following are assumptions of the error terms in the simple linear regression
model except
A. Errors are normally distributed.
B. Error terms have a mean of zero.
C. Error terms have a constant variance.
D. Error terms are dependent on each other. AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 3
Topic: Simple Linear Regression model assumptions 25. _____ measures the strength of the linear relationship between the dependent and the
independent variable.
A. Correlation coefficient
B. Distance value
C. Y Intercept
D. Residual AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 6
Topic: Correlation 26. The least squares regression line minimizes the sum of the
A. Differences between actual and predicted Y values
B. Absolute deviations between actual and predicted Y values
C. Absolute deviations between actual and predicted X values
D. Squared differences between actual and predicted Y values
E. Squared differences between actual and predicted X values AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 2
Topic: Simple Linear Regression 11206 Chapter 01  An Introduction to Business Statistics 27. Which of the following is a violation of one of the major assumptions of the simple
regression model?
A. The error terms are independent of each other.
B. Histogram of the residuals form a bellshaped, symmetrical curve.
C. The error terms show no pattern.
D. As the value of x increases, the value of the error term also increases. AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 3
Topic: Simple Linear Regression model assumptions 28. For the same value X (independent variable), the confidence interval for the average value
of Y (dependent variable) is __________________ the prediction interval for the individual
value of Y.
A. Larger than
B. Smaller than
C. Same as
D. Sometimes larger than sometimes smaller than AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 5
Topic: Confidence & prediction intervals 29. The ___________ the r2, and the __________ the s (standard error), the stronger the
relationship between the dependent variable and the independent variable.
A. Higher, lower
B. Lower, higher
C. Lower, lower
D. Higher, higher AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 6
Topic: Coefficient of determination 11207 Chapter 01  An Introduction to Business Statistics 30. In simple regression analysis, the standard error is ___________ greater than the standard
deviation of y values.
A. Always
B. Sometimes
C. Never AACSB: Reflective Thinking
Bloom's: Knowledge
Difficulty: Medium
Learning Objective: 3
Topic: Simple Linear Regression 31. In simple regression analysis the quantity that gives the amount by which Y (dependent
variable) changes for a unit change in X (independent variable) is called the
A. Coefficient of determination
B. Slope of the regression line
C. Y...
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 Winter '14

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