Question

MULTIPLE CHOICE

1. You want to investigate if sales tends to differ depending on the amount of advertisement?

A. Test for all slopes in a Multiple Regression model

B. Test for Means comparing 2 groups

C. Tukey-Kramer Procedure for Means

2. You are using Advertisement and Price Coefficients and you feel it has an effect on Sales?

A. Correlation
B. Adjusted R-Squared

C. R-Squared

3. In regression, you want to make sure that the confidence intervals and p-values that you obtain are accurate.

A. Assumption of Independence

B. Assumption of Normality

C. Assumption of Fit (Linearity)

Answer 1

1.

Test for comparing means for two groups can be the case here. One group with no advertisements and others with advertisements.

Option B is the right answer.

2.

To see the effect of advertisement and price coefficient on sales, we can create a linear regression model and can calculate R-squared.

It tells us how much variation in sales is due to the advertisement.

Option C is the right answer.

3.

To make sure that confidence interval and p-value are accurate, we need to see the assumption of fit(linearity) here.

Option C is the right answer.