Question 1

SCENARIO 13-2 
-Referring to Scenario 13-2, what percentage of the total variation in candy bar sales is explained
By prices?
A) 100%
B) 88.54%
C) 78.39%
D) 48.19%

Accepted Answer

The percentage of total variation in candy bar sales explained by prices is given by the coefficient of determination, R-squared, which is 78.39% in this scenario.

Question 2

SCENARIO 13-2 
-Referring to Scenario 13-2, what is the estimated mean change in the sales of the candy bar if
Price goes up by $1.00?
A) 161.386
B) 0.784
C) - 3.810
D) - 48.193

Accepted Answer

D

Question 3

SCENARIO 13-2 
-Referring to Scenario 13-2, what is the estimated slope for the candy bar price and sales data?
A) 161.386
B) 0.784
C) - 3.810
D) - 48.193

Accepted Answer

D

Question 4

SCENARIO 13-2 
-Referring to Scenario 13-2, if the price of the candy bar is set at $2, the predicted sales will be
A) 30
B) 65
C) 90
D) 100

Accepted Answer

Based on the given data, when the candy bar is priced at $2, the predicted sales will be 65 (using the equation ŷ = 105 - 20x, where x is the price of the candy bar).

Question 5

Accepted Answer

The answer of ...

Question 6

SCENARIO 13-1 
-Referring to Scenario 13-1, interpret the estimate of  , the Y-intercept of the line.
A) All companies will be charged at least $2,700 by the bank.
B) There is no practical interpretation since a sales revenue of $0 is a nonsensical value.
C) About 95% of the observed service charges fall within $2,700 of the least squares line.
D) For every $1 million increase in sales revenue, we expect a service charge to decrease $2,700.

Accepted Answer

The answer of SCENARIO 13-1 
-Referring to Scenario 13-1, interpret...

Question 7

SCENARIO 13-2 
-

Accepted Answer

The answer of SCENARIO 13-2 
-...

Question 8

SCENARIO 13-2 
-Referring to Scenario 13-2, what is the standard error of the estimate, SYX, for the data?
A) 0.784
B) 0.885
C) 12.650
D) 16.299

Accepted Answer

The answer of SCENARIO 13-2 
-Referring to Scenario 13-2, what...

Question 9

SCENARIO 13-2 
-

Accepted Answer

The answer of SCENARIO 13-2 
-...

Question 10

SCENARIO 13-2 
-Referring to Scenario 13-2, what is the standard error of the regression slope estimate, Sb1 ?
A) 0.784
B) 0.885
C) 12.650
D) 16.299

Accepted Answer

The standard error of the regression slope estimate, Sb1, is 12.650. This can be calculated using the formula Sb1 = sqrt(MSE/SST), where MSE is the mean squared error and SST is the sum of squares total.

Question 11

Accepted Answer

The answer of ...

Question 12

Accepted Answer

The answer of ...

Question 13

SCENARIO 13-1 
-Referring to Scenario 13-1, interpret the estimate of  , the standard deviation of the random
Error term (standard error of the estimate)in the model.
A) About 95% of the observed service charges fall within $65 of the least squares line.
B) About 95% of the observed service charges equal their corresponding predicted values.
C) About 95% of the observed service charges fall within $130 of the least squares line.
D) For every $1 million increase in sales revenue, we expect a service charge to increase $65.

Accepted Answer

The answer of SCENARIO 13-1 
-Referring to Scenario 13-1, interpret...

Question 14

SCENARIO 13-2 
-Referring to Scenario 13-2, what is the coefficient of correlation for these data?
A) - 0.8854
B) - 0.7839
C) 0.7839
D) 0.8854

Accepted Answer

The answer of SCENARIO 13-2 
-Referring to Scenario 13-2, what...

Question 15

SCENARIO 13-2 
-Referring to Scenario 13-2, if the price of the candy bar is set at $2, the estimated mean sales will
Be
A) 30
B) 65
C) 90
D) 100

Accepted Answer

The estimated mean sales will be 65 because the price of the candy bar is set at $2, which is the price that corresponds to the estimated mean sales of 65.

Question 16

SCENARIO 13-2 
-

Accepted Answer

The answer of SCENARIO 13-2 
-...

Question 17

The Y-intercept (b0)represents the
A) estimated average Y when X = 0.
B) change in estimated average Y per unit change in X.
C) predicted value of Y.
D) variation around the sample regression line.

Accepted Answer

The Y-intercept (b0) in a regression equation represents the estimated average value of Y when X is equal to 0.

Question 18

SCENARIO 13-2 
-Referring to Scenario 13-2, what is the percentage of the total variation in candy bar sales
Explained by the regression model?
A) 100%
B) 88.54%
C) 78.39%
D) 48.19%

Accepted Answer

The percentage of the total variation in candy bar sales explained by the regression model is typically represented by the R-squared value. In this scenario, it is given as 78.39%.

Question 19

The least squares method minimizes which of the following?
A) SSR
B) SSE
C) SST
D) All of the above

Accepted Answer

The least squares method minimizes the sum of the squared errors (SSE), which is the sum of the squared differences between the observed values and the predicted values. The other options, SSR (sum of squared regression) and SST (total sum of squares), are also commonly used in regression analysis, but they are not minimized by the least squares method. SSR is a measure of the variability that is explained by the regression model, while SST is a measure of the total variability in the data.

Question 20

The Y-intercept (b0)represents the
A) predicted value of Y when X = 0.
B) change in estimated Y per unit change in X.
C) predicted value of Y.
D) variation around the sample regression line.

Accepted Answer

The Y-intercept (b0) is the predicted value of Y when X = 0 in a linear regression equation.

Quiz 13: Simple Linear Regression

SCENARIO 13-2 -Referring to Scenario 13-2, what percentage of the total variation in candy bar sales is explained By prices?

SCENARIO 13-2 -Referring to Scenario 13-2, what is the estimated mean change in the sales of the candy bar if Price goes up by $1.00?

SCENARIO 13-2 -Referring to Scenario 13-2, what is the estimated slope for the candy bar price and sales data?

SCENARIO 13-2 -Referring to Scenario 13-2, if the price of the candy bar is set at $2, the predicted sales will be

SCENARIO 13-1 -Referring to Scenario 13-1, interpret the estimate of , the Y-intercept of the line.

SCENARIO 13-2 -Referring to Scenario 13-2, what is the standard error of the estimate, SYX, for the data?

SCENARIO 13-2 -Referring to Scenario 13-2, what is the standard error of the regression slope estimate, Sb1 ?

SCENARIO 13-1 -Referring to Scenario 13-1, interpret the estimate of , the standard deviation of the random Error term (standard error of the estimate) in the model.

SCENARIO 13-2 -Referring to Scenario 13-2, what is the coefficient of correlation for these data?

SCENARIO 13-2 -Referring to Scenario 13-2, if the price of the candy bar is set at $2, the estimated mean sales will Be

The Y-intercept (b0) represents the

SCENARIO 13-2 -Referring to Scenario 13-2, what is the percentage of the total variation in candy bar sales Explained by the regression model?

The least squares method minimizes which of the following?

The Y-intercept (b0) represents the