Question 1

An economist is interested to see how consumption for an economy (in $ billions)is influenced by gross domestic product ($ billions)and aggregate price (consumer price index).Annual data Copyright ©2019 Pearson Education,Inc.
A Roadmap for Analyzing Data 18-23
From 30 years were collected.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

Since the economist is interested in analyzing how consumption is influenced by both GDP and aggregate price, a multiple linear regression would be the most appropriate analysis to perform. Simple linear regression would only consider the relationship between consumption and one predictor variable (either GDP or aggregate price), while exponential smoothing and autoregressive modeling are time series forecasting techniques, which may not be the primary objective of the analysis.

Question 2

The director of admissions at a state college is interested in seeing if admissions status (admitted,waiting list,denied admission)at his college is related to the type of community (urban,rural,suburban)in which an applicant resides.Which of the following tests will be the most appropriate?

Accepted Answer

The Chi-square test for independence is the most appropriate choice for determining if there is a relationship between two categorical variables: admissions status and type of community.

Question 3

A certain type of rare gem serves as a status symbol for many of its owners.In theory,for low prices,the demand increases,and it decreases as the price of the gem increases.However,experts hypothesize that when the gem is valued at very high prices,the demand increases with price due to the status owners believe they gain in obtaining the gem.Data on price and quantity sold were collected for a sample of 35 rare gems of this type.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

A quadratic regression model can capture the non-linear relationship hypothesized by the experts that demand increases with price at high prices due to status symbol. Exponential smoothing, autoregressive modeling, and least-squares forecasting are not appropriate for capturing non-linear relationships.

Question 4

A contractor wants to forecast the number of contracts in future quarters,using quarterly data on number of contracts over the last 10 years.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

The answer of A contractor wants to forecast the number...

Question 5

A manager of a product sales group believes the number of sales made by an employee depends on how many years that employee has been with the company and how he/she scored on a business aptitude test.A random sample of 38 employees was selected to collect data on their number of sales,number of years with the company and scores on a business aptitude test.Which of the following would you perform to draw conclusion on the belief?

Accepted Answer

Multiple linear regression is the best choice because it allows us to examine the relationship between the number of sales made by an employee and multiple independent variables, including the number of years with the company and scores on a business aptitude test. One-way ANOVA and simple linear regression would only allow us to examine the relationship between one independent variable and the number of sales, while two-way ANOVA is used to examine the interaction between two independent variables.

Question 6

A political pollster randomly selects a sample of 100 voters each day for 8 successive days and asks how many will vote for the incumbent.The pollster wishes to see if the percentage favoring the incumbent candidate is too erratic.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

To analyze the stability and variability of the percentage favoring the incumbent candidate over time, constructing a p-chart is the most appropriate option. A p-chart is a control chart used to monitor the proportion of defects or nonconforming items in a sample. In this case, the proportion of voters who favor the incumbent candidate is the measure of interest. A p-chart will allow the pollster to determine if the percentage favoring the incumbent candidate is within the acceptable range of variability or if it is too erratic. Multiple linear regression and exponential smoothing are not appropriate for this type of data, and Levene's test is used to test for equality of variances in two or more groups, which is not applicable in this scenario.

Question 7

An agronomist wants to compare the crop yield of 3 varieties of chickpea seeds.She plants all 3 varieties of the seeds on each of 5 different patches of fields.She then measures the crop yield in bushels per acre.Which of the following tests will be the most appropriate to find out if the different patches is advantageous in reducing the random error?

Accepted Answer

The answer of An agronomist wants to compare the crop...

Question 8

SCENARIO 18-2
One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y). To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( XS1U1B11S1U1B0 ), the amount of insulation in inches ( X S1U1B12S1U1B0 ), the number of windows in the house ( XS1U1B13S1U1B0 ), and the age of the furnace in years ( X S1U1B14S1U1B0 ). Given below are the EXCEL outputs of two regression models.

-Referring to Scenario 18-1,which of the independent variables in the model are significant at the 5% level?

Accepted Answer

In the first regression model, both Income and Size have p-values smaller than 0.05, indicating that they are significant at the 5% level. In the second model, only Size has a p-value smaller than 0.05, indicating its significance. Therefore, the best choice is the independent variables Income and Size.

Question 9

A Paso Robles wine producer wanted to forecast the cases of Merlot wine sold.The number of cases of merlot wine sold in a 28-year period was collected.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

Since the objective is to forecast the cases of Merlot wine sold, exponential smoothing modeling would be the most appropriate analysis to use. This technique is used for time series forecasting and can handle both seasonality and trend in the data. Least-squares forecasting with monthly or quarterly data would also be a good choice, but it does not take into account any seasonality in the sales data. The Marascuilo Procedure and the Tukey-Kramer Procedure are used for multiple comparisons in statistical testing and are not applicable for time series forecasting.

Question 10

SCENARIO 18-2 One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y). To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( XS1U1B11S1U1B0 ), the amount of insulation in inches ( X S1U1B12S1U1B0 ), the number of windows in the house ( XS1U1B13S1U1B0 ), and the age of the furnace in years ( X S1U1B14S1U1B0 ). Given below are the EXCEL outputs of two regression models. -Referring to Scenario 18-1,when the builder used a simple linear regression model with house size (House)as the dependent variable and education (School)as the independent variable,he obtained an r² value of 23.0%.What additional percentage of the total variation in house size has been explained by including family size and income in the multiple regression?

Accepted Answer

The answer of SCENARIO 18-2
One of the most common questions...

Question 11

An agronomist wants to compare the crop yield of 3 varieties of chickpea seeds.She plants all 3 varieties of the seeds on each of 5 different patches of fields.She then measures the crop yield in bushels per acre.She has found out that the different varieties do have an impact on crop yield.Which of the following tests will be the most appropriate to find out which variety will produce the highest yield?

Accepted Answer

The answer of An agronomist wants to compare the crop...

Question 12

Four surgical procedures currently are used to install pacemakers.If the patient does not need to return for follow-up surgery,the operation is called a "clear" operation.A heart center wants to compare the 4 procedures,and collects the following numbers of patients from their own records:  Which of the following tests will be the most appropriate to find out whether the 4 procedures are equally effective?

Accepted Answer

The answer of Four surgical procedures currently are used to...

Question 13

Four surgical procedures currently are used to install pacemakers.If the patient does not need to return for follow-up surgery,the operation is called a "clear" operation.A heart center wants to compare the 4 procedures,and collects the following numbers of patients from their own records:  Which of the following tests will be the most appropriate to find out which of the 4 procedures is the most effective?

Accepted Answer

The answer of Four surgical procedures currently are used to...

Question 14

SCENARIO 18-2
One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y). To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( XS1U1B11S1U1B0 ), the amount of insulation in inches ( X S1U1B12S1U1B0 ), the number of windows in the house ( XS1U1B13S1U1B0 ), and the age of the furnace in years ( X S1U1B14S1U1B0 ). Given below are the EXCEL outputs of two regression models.

-Referring to Scenario 18-1,what fraction of the variability in house size is explained by income,size of family,and education?

Accepted Answer

The fraction of the variability in house size explained by income, size of family, and education is represented by the coefficient of determination (R^2) in a multiple regression analysis. The correct answer, 74.8%, indicates that these variables together explain 74.8% of the variance in house size, making it the most plausible choice given the options.

Question 15

The superintendent of a school district wanted to predict the percentage of students passing a sixth-grade proficiency test.She obtained the data on percentage of students passing the proficiency test (% Passing),daily mean of the percentage of students attending class (% Attendance),mean teacher salary in dollars (Salaries),and instructional spending per pupil in dollars (Spending)of 47 schools in the state.She believed that holding everything else constant,instructional spending per pupil had a positive but decreasing impact on percentage.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

Linear regression with log transformation is the most appropriate analysis to perform because it can account for the non-linear relationship between instructional spending per pupil and the percentage of students passing the proficiency test. The superintendent believes that this relationship is positive but decreasing, which suggests a logarithmic function. The log transformation can help to linearize this relationship and make it suitable for regression analysis.

Question 16

An agronomist wants to compare the crop yield of 3 varieties of chickpea seeds.She plants all 3 varieties of the seeds on each of 5 different patches of fields.She then measures the crop yield in bushels per acre.Which of the following tests will be the most appropriate to find out if there is any difference in crop yield among the 3 varieties?

Accepted Answer

The Randomized block F test is most appropriate because it accounts for the variability among the different patches (blocks) while comparing the means of the three varieties, thus providing a more accurate analysis of the differences in crop yield among the varieties.

Question 17

SCENARIO 18-2
One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y). To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( XS1U1B11S1U1B0 ), the amount of insulation in inches ( X S1U1B12S1U1B0 ), the number of windows in the house ( XS1U1B13S1U1B0 ), and the age of the furnace in years ( X S1U1B14S1U1B0 ). Given below are the EXCEL outputs of two regression models.

-Referring to Scenario 18-1,which of the following values for the level of significance is the smallest for which every explanatory variable is significant individually?

Accepted Answer

The answer of SCENARIO 18-2
One of the most common questions...

Question 18

SCENARIO 18-2
One of the most common questions of prospective house buyers pertains to the cost of heating in dollars (Y). To provide its customers with information on that matter, a large real estate firm used the following 4 variables to predict heating costs: the daily minimum outside temperature in degrees of Fahrenheit ( XS1U1B11S1U1B0 ), the amount of insulation in inches ( X S1U1B12S1U1B0 ), the number of windows in the house ( XS1U1B13S1U1B0 ), and the age of the furnace in years ( X S1U1B14S1U1B0 ). Given below are the EXCEL outputs of two regression models.

-Referring to Scenario 18-1,which of the following values for the level of significance is the smallest for which at least two explanatory variables are significant individually?

Accepted Answer

The answer of SCENARIO 18-2
One of the most common questions...

Question 19

An investor wanted to forecast the price of a certain stock.He collected the mean daily price for the stock over the past 10 years.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

Since the investor is looking to forecast the price of a stock based on historical data, autoregressive modeling would be the most appropriate analysis to perform. This type of modeling takes into account the past values of the variable being analyzed to predict future values. The other options listed (Marascuilo Procedure, Tukey-Kramer Procedure, and least-squares forecasting) are not designed for this type of analysis.

Question 20

A Paso Robles wine producer wanted to forecast the cases of Merlot wine sold.The number of cases of merlot wine sold in a 28-year period was collected.Which of the following would be the most appropriate analysis to perform?

Accepted Answer

The answer of A Paso Robles wine producer wanted to...

Quiz 18: A Roadmap for Analyzing Data

The director of admissions at a state college is interested in seeing if admissions status (admitted,waiting list,denied admission) at his college is related to the type of community (urban,rural,suburban) in which an applicant resides.Which of the following tests will be the most appropriate?

A contractor wants to forecast the number of contracts in future quarters,using quarterly data on number of contracts over the last 10 years.Which of the following would be the most appropriate analysis to perform?

A Paso Robles wine producer wanted to forecast the cases of Merlot wine sold.The number of cases of merlot wine sold in a 28-year period was collected.Which of the following would be the most appropriate analysis to perform?

An investor wanted to forecast the price of a certain stock.He collected the mean daily price for the stock over the past 10 years.Which of the following would be the most appropriate analysis to perform?

A Paso Robles wine producer wanted to forecast the cases of Merlot wine sold.The number of cases of merlot wine sold in a 28-year period was collected.Which of the following would be the most appropriate analysis to perform?