Question

PLEASE ANSWER ALL QUESTIONS !

1. The following sample observations were randomly selected (numbers may be different from previous problems):

X	Y
4	4
5	6
3	5
6	7
10	7

What is the slope of the regression equation?

Select one:

a. 5.6

b. 0.36

c. 1.56

d. 5.8

2. A business is evaluating their advertising budget, and wishes to determine the relationship between advertising dollars spent and changes in revenue. Below is the output from their regression.

SUMMARY OUTPUT

Regression Statistics

Multiple R	0.95
R Square	0.90
Adjusted R Square	0.82
Standard Error	0.82
Observations	8
ANOVA
	df	SS	MS	F	Significance F
Regression	3	23.188	7.729	11.505	0.020
Residual	4	2.687	0.672
Total	7	25.875
	Coefficients	Std Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	83.91	2.03	41.36	0.00	78.28	89.54
TV ($k)	1.96	0.48	4.10	0.01	0.63	3.29
Radio ($k)	0.76	0.47	1.64	0.18	-0.53	2.05
Newspaper ($k)	1.76	1.93	0.91	0.41	-3.60	7.11

How do you know that their is a positive relationship between the money spent on TV advertising and the revenue at the store?

Select one:

a. The coefficient for TV advertising, 1.96.

b. The intercept, 83.91, which is positive.

c. R Square is 0.90, which is positive.

d. Multiple R (The multiple coefficient of correlation) is 0.95, which indicates a strong positive relationship.

3. The owner of Maumee Ford-Mercury wants to study the relationship between the age of a car and its selling price. If we want to estimate the selling price on the basis of the age of the car, which variable is the dependent variable?

Select one:

a. The age of the car

b. The selling price of the car

c. The relationship between the age of the car and its selling price

d. The owner of Maumee Ford-Mercury

Answer 1

1) from the given data

Slope = 0.36

2) From the given output, Multiple R =0.95 which is nothing but pearson correlation

Option D: Multiple R = 0.95 which indicates strong correlation between money spent and revenue

3) Given two variables are age of the car, selling price of car

If age of the car is independent variable then dependent variable is selling price of the car