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# CHAPTER 16 SECTION 3-4: SIMPLE LINEAR REGRESSION AND CORRELATION

MULTIPLE CHOICE 88. In a simple linear regression problem, the following sum of squares are produced: , and variation in x is: a. 2 ! b. " ! c. ##! d. \$! %&': ( )T': * +,-: ',.TI/& *0.#1*0.2 ,

## . The percentage of the variation in y that is explained by the

83. In simple linear regression, most often we perform a two1tail test of the population slope * to determine whether there is sufficient evidence to infer that a linear relationship exists. The null hypothesis is stated as: a. H\$: * 4 \$ b. H\$: * 4 b* c. H\$: * \$ d. &one of these choices. %&': % )T': * +,-: ',.TI/& *0.#1*0.2

3\$. Testing whether the slope of the population regression line could be 5ero is equivalent to testing whether the: a. sample coefficient of correlation could be 5ero b. standard error of estimate could be 5ero c. population coefficient of correlation could be 5ero d. sum of squares for error could be 5ero %&': . )T': * +,-: ',.TI/& *0.#1*0.2 and n 4 0, the standard error of estimate is:

3*. 6iven that a. #,"23.\$\$ b. 3#".2 c. #\$.0* d. &one of these choices. %&': . )T': *

## +,-: ',.TI/& *0.#1*0.2

32. The symbol for the population coefficient of correlation is: a. r b. c. r2 d. 2 %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

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3#. 6iven that the sum of squares for error is 0\$ and the sum of squares for regression is *2\$, then the coefficient of determination is: a. \$.223 b. \$.#\$\$ c. \$."\$\$ d. &one of these choices. %&': . )T': * +,-: ',.TI/& *0.#1*0.2

32. % regression line using 2 observations produced ''+ 4 **8.08 and '', 4 0.#2. The standard error of estimate was: a. 2.** b. *. 0 c. 2.22 d. &one of these choices. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

3 . The symbol for the sample coefficient of correlation is: a. r b. c. r2 d. 2 %&': % )T': * +,-: ',.TI/& *0.#1*0.2 , and a coefficient of determination of \$.8*,

30. 6iven the least squares regression line the coefficient of correlation is: a. \$.00 b. \$.8* c. \$.3\$ d. \$.3\$ %&': 8 )T': *

## +,-: ',.TI/& *0.#1*0.2 , and a coefficient of determination of \$.8*, the

3". 6iven the least squares regression line coefficient of correlation is: a. \$.00 b. \$.8* c. \$.3\$ d. \$.3\$ %&': . )T': *

## +,-: ',.TI/& *0.#1*0.2

38. If the coefficient of determination is \$.3" , then which of the following is true regarding the slope of the regression line9 a. %ll we can tell is that it must be positive. b. It must be \$.3" . c. It must be \$.38". d. .annot tell the sign or the value. %&': 8 )T': * +,-: ',.TI/& *0.#1*0.2

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33. In regression analysis, if the coefficient of determination is *.\$, then: a. the sum of squares for error must be *.\$ b. the sum of squares for regression must be *.\$ c. the sum of squares for error must be \$.\$ d. the sum of squares for regression must be \$.\$ %&': . )T': * +,-: ',.TI/& *0.#1*0.2

*\$\$. The coefficient of correlation is used to determine: a. the strength and direction of the linear relationship between x and y. b. the least squares estimates of the regression parameters. c. the predicted value of y for a given value of x. d. %ll of these choices. %&': % )T': * +,-: ',.TI/& *0.#1*0.2

*\$*. If the coefficient of correlation is \$.8\$, then the percentage of the variation in y that is explained by the variation in x is: a. 8\$! b. 02! c. 83! d. &one of these choices. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

*\$2. If all the points in a scatter diagram lie on the least squares regression line, then the coefficient of correlation must be: a. *.\$ b. *.\$ c. either *.\$ or *.\$ d. \$.\$ %&': . )T': * +,-: ',.TI/& *0.#1*0.2

*\$#. If the coefficient of correlation is \$.0\$, then the coefficient of determination is: a. \$.0\$ b. \$.#0 c. \$.#0 d. \$."" %&': . )T': * +,-: ',.TI/& *0.#1*0.2

*\$2. If the coefficient of correlation between x and y is close to *.\$, this indicates that: a. y causes x to happen. b. x causes y to happen. c. both a and b. d. there may or may not be a causal relationship between x and y. %&': 8 )T': * +,-: ',.TI/& *0.#1*0.2

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*\$ . :hen all the actual values of y are equal to their predicted values, the standard error of estimate will be: a. *.\$ b. *.\$ c. \$.\$ d. &one of these choices. %&': . )T': * +,-: ',.TI/& *0.#1*0.2

*\$0. :hich of the following statistics and procedures can be used to determine whether a linear model should be employed9 a. The standard error of estimate. b. The coefficient of determination. c. The t1test of the slope. d. %ll of these choices are true. %&': 8 )T': * +,-: ',.TI/& *0.#1*0.2 ,

*\$". In testing the hypotheses: H\$: * 4 \$ vs. H\$: * \$, the following statistics are available: , , , and . The value of the test statistic is: a. 2.\$22 b. \$.#\$0 c. *. \$ d. \$.#\$\$ %&': % )T': * +,-: ',.TI/& *0.#1*0.2

*\$8. The standard error of estimate s is given by: a. b. c. d. %&': . )T': * +,-: ',.TI/& *0.#1*0.2

*\$3. If the standard error of estimate s 4 2\$ and n 4 *\$, then the sum of squares for error, '',, is: a. 2\$\$ b. #,2\$\$ c. 2,\$\$\$ d. 2\$,\$\$\$ %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

**\$. The smallest value that the standard error of estimate s can assume is: a. * b. \$ c. * d. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

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, and

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## +,-: ',.TI/& *0.#1*0.2

**2. The standard error of estimate s is a measure of the: a. variation of y around the regression line. b. variation of x around the regression line. c. variation of y around the mean . d. variation of x around the mean . %&': % )T': * +,-: ',.TI/& *0.#1*0.2

**#. The )earson coefficient of correlation r equals one when there is no: a. linear relationship between x and y. b. unexplained variation. c. y1intercept in the model. d. slope in the model. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

**2. In regression analysis, the coefficient of determination R2 measures the amount of variation in y that is: a. caused by the variation in x. b. explained by the variation in x. c. unexplained by the variation in x. d. &one of these choices. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

** . If we are interested in determining whether two variables are linearly related, it is necessary to: a. perform the t1test of the slope *. b. perform the t1test of the coefficient of correlation . c. either a or b since they are identical. d. &one of these choices. %&': . )T': * +,-: ',.TI/& *0.#1*0.2

**0. In a regression problem the following pairs of ;x, y< are given: ;#, *<, ;#, *<, ;#, \$<, ;#, 2< and ;#, 2<. That indicates that the: a. correlation coefficient is *=2. b. correlation coefficient is \$. c. correlation coefficient is *. d. coefficient of determination is #. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

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**". In a regression problem, if the coefficient of determination is \$.3 , this means that: a. 3 ! of the y values are positive. b. 3 ! of the variation in y can be explained by the variation in x. c. 3 ! of the y values are predicted correctly by the model. d. &one of these choices. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

**8. The sample correlation coefficient between x and y is \$.#" . It has been found out that the p1value is \$.2 0 when testing H\$: 4 \$ against the two1sided alternative H*: \$. To test H\$: 4 \$ against the one1sided alternative H*: > \$ at a significant level of \$.*3#, the p-value will be equal to a. \$.*28 b. \$. *2 c. \$."22 d. \$.8"2 %&': % )T': * +,-: ',.TI/& *0.#1*0.2

**3. In simple linear regression, which of the following statements indicates there is no linear relationship between the variables x and y9 a. .oefficient of determination is *.\$. b. .oefficient of correlation is \$.\$. c. 'um of squares for error is \$.\$. d. &one of these choices. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

*2\$. If the sum of squared residuals is 5ero, then the: a. coefficient of determination must be *.\$. b. coefficient of correlation must be *.\$. c. linear relationship between x and y is perfect. d. %ll of these choices are true. %&': 8 )T': * +,-: ',.TI/& *0.#1*0.2

*2*. If the standard error of estimate is 5ero, then: a. the coefficient of determination must be *.\$. b. all the points fall on the regression line. c. there is no unexplained variation left. d. %ll of these choices are true. %&': 8 )T': * +,-: ',.TI/& *0.#1*0.2

*22. The standard error of the estimate is a measure of the: a. total variation in the y variable. b. variation around the regression line. c. percentage of variation in y explained by the variation in x. d. the variation of the x variable. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

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*2#. In simple linear regression, the coefficient of correlation r and the least squares estimate b* of the population slope *: a. must be equal. b. must have the same sign. c. are not related. d. &one of these choices. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

*22. In performing a regression analysis which of the following must be true about the distribution of the error variable9 a. The distribution is normal with mean 5ero. b. The errors associated with one y value are independent of errors associated with another y value. c. The standard deviation is constant for each value of x. d. %ll of these choices are true. %&': 8 )T': * +,-: ',.TI/& *0.#1*0.2

*2 . :hich of the following assumptions concerning the probability distribution of the random error term is stated incorrectly9 a. The distribution is normal. b. The mean of the distribution is \$. c. The variance of the distribution increases as x increases. d. The errors are independent from one value of y to the next. %&': . )T': * +,-: ',.TI/& *0.#1*0.2

*20. In a simple linear regression problem, r and b0: a. must be equal to each other. b. must have the same sign. c. must have opposite signs. d. are not related. %&': ( )T': * +,-: ',.TI/& *0.#1*0.2

*2". If the coefficient of correlation is \$.3\$, then the percentage of the variation in the dependent variable y that is explained by the variation in the independent variable x is: a. 3\$! b. 8*! c. 3 ! d. &one of these choices. %&': ( TRUE/FALSE *28. If the value of the sum of squares for error '', equals 5ero, then the coefficient of determination must equal 5ero. %&': )T': * +,-: ',.TI/& *0.#1*0.2 )T': * +,-: ',.TI/& *0.#1*0.2

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*23. :hen the actual values y of a dependent variable and the corresponding predicted values same, the standard error of the estimate will be *.\$. %&': )T': * +,-: ',.TI/& *0.#1*0.2

are the

*#\$. The value of the sum of squares for regression ''+ can never be smaller than \$.\$. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*#*. The value of the sum of squares for regression ''+ can never be smaller than *. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*#2. If the coefficient of correlation is *.\$, then the coefficient of determination must be *.\$. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*##. In a simple linear regression model, testing whether the slope * of the population regression line could be 5ero is the same as testing whether or not the population coefficient of correlation equals 5ero. %&': T )T': * +,-: ',.TI/& *0.#1*0.2 are the

*#2. :hen the actual values y of a dependent variable and the corresponding predicted values same, the standard error of estimate s will be \$.\$. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*# . If there is no linear relationship between two variables x and y, the coefficient of determination must be *.\$. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*#0. The value of the sum of squares for regression ''+ can never be larger than the value of sum of squares for error '',. %&': )T': * +,-: ',.TI/& *0.#1*0.2 , and the coefficient of

*#". In a simple linear regression problem, the least squares line is determination is \$.8*. The coefficient of correlation must be \$.3\$. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*#8. In simple linear regression, the denominator of the standard error of estimate s is %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*#3. The value of the sum of squares for regression ''+ can never be larger than the value of total sum of squares ''T. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

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*2\$. If the coefficient of determination is *.\$, then the coefficient of correlation must be *.\$. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*2*. .orrelation analysis is used to determine whether there is a linear relationship between an independent variable x and a dependent variable y. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*22. If the coefficient of correlation is \$.8*, then the percentage of the variation in y that is explained by the regression line is 8*!. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*2#. If all the points in a scatter diagram lie on the least squares regression line, then the coefficient of correlation must be *.\$. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*22. The probability distribution of the error variable is normal, with mean E;< 4 \$, and standard deviation 4*. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*2 . If the coefficient of determination is \$.3 , this means that 3 ! of the variation in the independent variable x can be explained by the y variable. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*20. If the coefficient of determination is \$.3 , this means that 3 ! of the y values were predicted correctly by the regression line. %&': )T': * +,-: ',.TI/& *0.#1*0.2

*2". If the error variable is normally distributed, the test statistic for testing H\$: * 4 \$ has a 'tudent t1 distribution with n 2 degrees of freedom. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*28. The coefficient of determination is equal to the coefficient of correlation squared. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

*23. % 5ero correlation coefficient between a pair of random variables means that there is no linear relationship between the random variables. %&': T )T': * +,-: ',.TI/& *0.#1*0.2

* \$. % 5ero population correlation coefficient for x and y means that there is no type of relationship whatsoever between x and y. %&': )T': * +,-: ',.TI/& *0.#1*0.2

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* *. % store manager gives a pre1employment examination to new employees. The test is scored from * to *\$\$. ?e has data on their sales at the end of one year measured in dollars. ?e wants to @now if there is any linear relationship between pre1employment examination score and sales. %n appropriate test to use is the t1test of the population correlation coefficient. %&': T COMPLETION * 2. -or a regression analysis to be valid, the error variable must have a;n< AAAAAAAAAAAAAAAAAAAA distribution. %&': normal )T': * +,-: ',.TI/& *0.#1*0.2 )T': * +,-: ',.TI/& *0.#1*0.2

* #. -or a regression analysis to be valid, the error variable must have a mean of AAAAAAAAAAAAAAAAAAAA. %&': 5ero \$ )T': * +,-: ',.TI/& *0.#1*0.2

* 2. -or a regression analysis to be valid, the error variable must have a standard deviation that is AAAAAAAAAAAAAAAAAAAA regardless of the value of x. %&': constant the same )T': * +,-: ',.TI/& *0.#1*0.2

* . -or a regression analysis to be valid, the value of the error variable associated with any particular value of y is AAAAAAAAAAAAAAAAAAAA of the value of the error variable associated with any other value of y. %&': independent )T': * +,-: ',.TI/& *0.#1*0.2

* 0. If the standard error of estimate is AAAAAAAAAAAAAAAAAAAA, this implies that the modelBs fit is poor. %&': large big )T': * +,-: ',.TI/& *0.#1*0.2

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* ". The unbiased estimator of the variance of the error variable is found by ta@ing AAAAAAAAAAAAAAAAAAAA divided by n 2. %&': '', sum of squares for error )T': * +,-: ',.TI/& *0.#1*0.2

* 8. If the regression line is hori5ontal, then we conclude that y AAAAAAAAAAAAAAAAAAAA ;is=is not< related to x. %&': is not )T': * +,-: ',.TI/& *0.#1*0.2

* 3. If the regression line is hori5ontal, the slope is AAAAAAAAAAAAAAAAAAAA and x and y are not related. %&': 5ero \$ )T': * +,-: ',.TI/& *0.#1*0.2

*0\$. The degrees of freedom for the test statistic for the slope is AAAAAAAAAAAAAAAAAAAA. %&': n2 n2 )T': * +,-: ',.TI/& *0.#1*0.2

*0*. The coefficient of AAAAAAAAAAAAAAAAAAAA measures the amount of variation in the dependent variable that is explained by the variation in the independent variable. %&': determination )T': * SHORT ANSWER Car Speed a d Ga! M"#ea\$e %n economist wanted to analy5e the relationship between the speed of a car ; x< and its gas mileage ;y<. %s an experiment a car is operated at several different speeds and for each speed the gas mileage is measured. These data are shown below. 'peed 6as Cileage 2 2\$ # #3 2 #" \$ ## 0\$ #\$ 0 2" "\$ 2 +,-: ',.TI/& *0.#1*0.2

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*02. D.ar 'peed and 6as Cileage &arrativeE .alculate the standard error of estimate, and describe what this statistic tells you about the regression line. %&': s 4 *.228F the model fits the data well. )T': * +,-: ',.TI/& *0.#1*0.2

*0#. D.ar 'peed and 6as Cileage &arrativeE 8oes this data provide sufficient evidence at the ! significance level to infer that a linear relationship exists between speed and gas mileage9 %&': H\$: 4 \$ vs. H*: \$ +eGection region: H t H > t\$.\$2 ,*\$ 4 2.228 Test statistic: t 4 3." 2 .onclusion: +eGect the null hypothesis. There is sufficient evidence at the ! significance level to infer that a linear relationship exists between speed and gas mileage. %s speed increases, gas mileage decreases. )T': * +,-: ',.TI/& *0.#1*0.2

*02. D.ar 'peed and 6as Cileage &arrativeE )redict with 33! confidence the gas mileage of a car traveling mph. %&': #*.2#0 0.282. Thus, I.I 4 22.3 2, and 7.I 4 #". 2. )T': * +,-: ',.TI/& *0.#1*0.2

*0 . D.ar 'peed and 6as Cileage &arrativeE .alculate the )earson coefficient of correlation. %&': r 4 \$.3" )T': * +,-: ',.TI/& *0.#1*0.2

*00. D.ar 'peed and 6as Cileage &arrativeE :hat does the coefficient of correlation tell you about the direction and strength of the relationship between the two variables9 %&': There is a very strong negative linear relationship between car speed and gas mileage. %s speed increases, gas mileage decreases, and this relationship is very reliable. )T': * +,-: ',.TI/& *0.#1*0.2

*0". D.ar 'peed and 6as Cileage &arrativeE .alculate the coefficient of determination and interpret its value. %&': R2 4 \$.3 . This means that 3 ! of the total variation in gas mileage can be explained by the speed of the car.
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## *08. The following *\$ observations of variables x and y were collected. x y a. b. c. * 2 2 22 # 2* 2 *3 *2 0 * " *2 8 *\$ 3 0 *\$ 2

.alculate the standard error of estimate. Test to determine if there is enough evidence at the ! significance level to indicate that x and y are negatively linearly related. .alculate the coefficient of correlation, and describe what this statistic tells you about the regression line.

%&': a. s 4 *.#22 b. H\$: * 4 \$ vs. H\$: * J \$ +eGection region: t J t\$.\$ ,8 4 *.80 Test statistic: t 4 *0.2\$2 .onclusion: +eGect the null hypothesis. There is enough evidence at the ! significance level to indicate that x and y have a negative linear relationship, according to this data. %s speed increases, gas mileage decreases. c. r 4 \$.38 2. This indicates a very strong negative linear relationship between the two variables. )T': * +,-: ',.TI/& *0.#1*0.2

*03. .onsider the following data values of variables x and y. x y a. b. c. 2 " 2 ** 0 *" 8 2* *\$ 2" *# #0

.alculate the coefficient of determination, and describe what this statistic tells you about the relationship between the two variables. .alculate the )earson coefficient of correlation. :hat sign does it have9 :hy9 :hat does the coefficient of correlation calculated tell you about the direction and strength of the relationship between the two variables9

%&': a. R2 4 \$.33 . This means that 33. ! of the variation in the dependent variable y is explained by the variation in the independent variable x. b. r 4 \$.33" . It is positive since the slope of the regression line is positive. c. There is a very strong ;almost perfect< positive linear relationship between the two variables. )T': * +,-: ',.TI/& *0.#1*0.2

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S% !&" e a d S'" Ca (er % medical statistician wanted to examine the relationship between the amount of sunshine ; x< and incidence of s@in cancer ;y<. %s an experiment he found the number of s@in cancers detected per *\$\$,\$\$\$ of population and the average daily sunshine in eight counties around the country. These data are shown below. %verage 8aily 'unshine '@in .ancer per *\$\$,\$\$\$ " " ** 0 3 " *2 8 * 0 *\$ 2 " #

*"\$. D'unshine and '@in .ancer &arrativeE .alculate the standard error of estimate, and describe what this statistic tells you about the regression line. %&': s 4 \$.30\$8F the model is a good fit for the data. )T': * +,-: ',.TI/& *0.#1*0.2

*"*. D'unshine and '@in .ancer &arrativeE .an we conclude at the *! significance level that there is a linear relationship between sunshine and s@in cancer9 %&': H\$: 4 \$ vs. H*: \$ +eGection region: H t H > t\$.\$\$ ,0 4 #."\$" Test statistic: t 4 8.28 .onclusion: +eGect the null hypothesis. :e conclude at the *! significance level that there is a linear relationship between sunshine and s@in cancer, according to this data. The relationship is positive, indicating that more sunshine is associated with more s@in cancer cases. )T': * +,-: ',.TI/& *0.#1*0.2

*"2. D'unshine and '@in .ancer &arrativeE .alculate the coefficient of determination and interpret it. %&': R2 4 \$.32#*. This means that 32.#*! of the variation in the incidence of s@in cancer is explained by the variation in the amount of sunshine. )T': * +,-: ',.TI/& *0.#1*0.2

*"#. D'unshine and '@in .ancer &arrativeE .alculate the )earson coefficient. :hat sign does it have9 :hy9 %&': R 4 \$.30\$8. It is positive since the slope of the regression line ; b* 4 *.820< is positive. )T': * +,-: ',.TI/& *0.#1*0.2

*"2. D'unshine and '@in .ancer &arrativeE :hat does the coefficient of correlation calculated tell you about the direction and strength of the relationship between the two variables9

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%&': There is a very strong ;almost perfect< positive linear relationship between these two variables. )T': * +,-: ',.TI/& *0.#1*0.2

Sa#e! a d E)per"e (e The general manager of a chain of furniture stores believes that experience is the most important factor in determining the level of success of a salesperson. To examine this belief she records last monthBs sales ;in K*,\$\$\$s< and the years of experience of *\$ randomly selected salespeople. These data are listed below. 'alesperson * 2 # 2 0 " 8 3 *\$ Lears of ,xperience \$ 2 *\$ # 8 *2 " 2\$ * 'ales " 3 2\$ * *8 *2 2\$ *" #\$ 2

*" . D'ales and ,xperience &arrativeE 8etermine the standard error of estimate and describe what this statistic tells you about the regression line. %&': s 4 *. "22F the model is a good fit for the data. )T': * +,-: ',.TI/& *0.#1*0.2

*"0. ;'ales and ,xperience &arrativeE 8etermine the coefficient of determination and discuss what its value tells you about the two variables. %&': R2 4 \$.3 #0, which means that 3 .#0! of the variation in sales is explained by the variation in years of experience of the salesperson. )T': * +,-: ',.TI/& *0.#1*0.2

*"". D'ales and ,xperience &arrativeE .alculate the )earson correlation coefficient. Interpret this result. %&': r 4 \$.3"0 . It has a positive sign since the slope of the regression line ; b* 4 *.\$8*"< is positive. This indicates a strong, positive linear relationship between years of experience and sales. )T': * +,-: ',.TI/& *0.#1*0.2

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*"8. D'ales and ,xperience &arrativeE .onduct a test of the population coefficient of correlation to determine at the ! significance level whether more experience is related to higher sales, as the manager speculates. %&': H\$: 4 \$ vs. H*: > \$ +eGection region: t > t.\$ ,8 4 *.80 Test statistic: t 4 *2.8# .onclusion: +eGect the null hypothesis. %ccording to this data, there is sufficient evidence to say that as experience increases, sales increases. )T': * +,-: ',.TI/& *0.#1*0.2

*"3. D'ales and ,xperience &arrativeE .onduct a test of the population slope to determine at the ! significance level whether a positive linear relationship exists between years of experience and sales. %&': H\$: * 4 \$ vs. H*: * > \$ +eGection region: t > t.\$ ,8 4 *.80 Test statistic: t 4 *2.8# .onclusion: +eGect the null hypothesis. Les, a linear relationship exists between years of experience and sales. %s experience increases, sales increases, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

*8\$. D'ales and ,xperience &arrativeE 8o the tests of and * in the previous two questions provide the same results9 ,xplain. %&': LesF both tests have the same value of the test statistic, the same reGection region, and of course the same conclusion. This is not a coincidenceF the two tests are identical. )T': * Ga*e W" +,-: ',.TI/& *0.#1*0.2 " \$! + Ed%(a,"-

%n ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief she gathers data about the last eight winners of her favorite game show. 'he records their winnings in dollars and the number of years of education. The results are as follows. .ontestant * 2 # 2 0 " 8 Lears of ,ducation ** * *2 *0 ** *0 *# *2 :innings " \$ 2\$\$ 0\$\$ # \$ 8\$\$ #\$\$ 0 \$ 2\$\$

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*8*. D6ame :innings M ,ducation &arrativeE 8etermine the standard error of estimate and describe what this statistic tells you about the regression line. %&': s 4 3.#3 F the model fits the data well. )T': * +,-: ',.TI/& *0.#1*0.2

*82. D6ame :innings M ,ducation &arrativeE 8etermine the coefficient of determination and discuss what its value tells you about the two variables. %&': R2 4 \$.3*8 , which means that 3*.8 ! of the variation in TN game showsB winnings is explained by the variation in years of education. )T': * +,-: ',.TI/& *0.#1*0.2

*8#. D6ame :innings M ,ducation &arrativeE .alculate the )earson correlation coefficient. :hat sign does it have9 :hy9 %&': r 4 \$.3 82. It has a negative sign since the slope of the regression line ; b* 4 83.*00"< is negative. This means as education increases, winnings decreases, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

*82. D6ame :innings M ,ducation &arrativeE .onduct a test of the population coefficient of correlation to determine at the ! significance level whether a negative linear relationship exists between years of education and TN game showsB winnings. %&': H\$: 4 \$ vs. H*: < \$ +eGection region: t J t\$.\$ ,0 4 *.32# Test statistic: t 4 8.222" .onclusion: +eGect the null hypothesis. % negative linear relationship exists between years of education and TN game showsB winnings, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

*8 . D6ame :innings M ,ducation &arrativeE .onduct a test of the population slope to determine at the ! significance level whether a negative linear relationship exists between years of education and TN game showsB winnings. %&': H\$: * 4 \$ vs. H*: * < \$ +eGection region: t J t\$.\$ ,0 4 *.32# Test statistic: t 4 8.222" .onclusion: +eGect the null hypothesis. Les, a negative linear relationship exists between years of education and TN game showsB winnings, according to this data.

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)T': * +,-: ',.TI/& *0.#1*0.2 *80. D6ame :innings M ,ducation &arrativeE 8o the tests and * in the previous two questions provide the same results9 ,xplain. %&': Les. This is not a coincidenceF the two tests are identical. )T': * M-."e Re.e %e! % financier whose specialty is investing in movie productions has observed that, in general, movies with Obig1nameO stars seem to generate more revenue than those movies whose stars are less well @nown. To examine his belief he records the gross revenue and the payment ;in K millions< given to the two highest1paid performers in the movie for ten recently released movies. Covie * 2 # 2 0 " 8 3 *\$ .ost of Two ?ighest )aid )erformers ;Kmil< .# ".2 *.# *.8 #. 2.0 8.\$ 2.2 2. 0." 6ross +evenue ;Kmil< 28 0 *8 2\$ #* 20 "# 2# #3 8 +,-: ',.TI/& *0.#1*0.2

*8". DCovie +evenues &arrativeE 8etermine the standard error of estimate and describe what this statistic tells you about the regression line. %&': s 4 2.\$22"F the model fits this data well. )T': * +,-: ',.TI/& *0.#1*0.2

*88. DCovie +evenues &arrativeE 8etermine the coefficient of determination and discuss what its value tells you about the two variables. %&': s 4 \$.33\$8, which means that 33.\$8! of the variation in gross revenue is explained by the variation in payment to the highest performers. )T': * +,-: ',.TI/& *0.#1*0.2

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*83. DCovie +evenues &arrativeE .alculate the )earson correlation coefficient. Interpret the results. %&': r 4 \$.33 2. It has a positive sign since the slope of the regression line ; b* 4 8.28 < is positive. There is a strong positive linear relationship between payment of the two top performers and movie revenue. )T': * +,-: ',.TI/& *0.#1*0.2

*3\$. DCovie +evenues &arrativeE .onduct a test of the population coefficient of correlation to determine at the ! significance level whether a positive linear relationship exists between payment to the two highest1paid performers and gross revenue. %&': H\$: 4 \$ vs. H*: > \$ +eGection region: t > t\$.\$ ,8 4 *.80 Test statistic: t 4 23.#\$ .onclusion: +eGect the null hypothesis. % positive linear relationship exists between payment to the two highest1paid performers and gross revenue, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

*3*. DCovie +evenues &arrativeE .onduct a test of the population slope to determine at the ! significance level whether a positive linear relationship exists between payment to the two highest1 paid performers and gross revenue. %&': H\$: * 4 \$ vs. H*: * > \$ +eGection region: t > t\$.\$ ,8 4 *.80 Test statistic: t 4 23.#\$ .onclusion: +eGect the null hypothesis. % positive linear relationship exists between payment to the two highest1paid performers and gross revenue, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

*32. DCovie +evenues &arrativeE 8o the and * tests in the previous questions provide the same results9 ,xplain. %&': LesF both tests have the same value of the test statistic, the same reGection region, and of course the same conclusion. This is not a coincidenceF the two tests are identical. )T': * C-!, -/ 0--'! The editor of a maGor academic boo@ publisher claims that a large part of the cost of boo@s is the cost of paper. This implies that larger boo@s will cost more money. %s an experiment to analy5e the claim, a university student visits the boo@store and records the number of pages and the selling price of twelve randomly selected boo@s. These data are listed below. +,-: ',.TI/& *0.#1*0.2

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(oo@ * 2 # 2 0 " 8 3 *\$ ** *2

## 'elling )rice ;K< \$ # 0\$ #\$ \$ 2\$ # 0 2 22 8

*3#. D.ost of (oo@s &arrativeE 8etermine the coefficient of determination and discuss what its value tells you. %&': R2 4 \$.3#"8, which means that 3#."8! of the variation in the price of boo@s is explained by the variation in the number of pages. )T': * +,-: ',.TI/& *0.#1*0.2

*32. D.ost of (oo@s &arrativeE .an we infer at the ! significance level that the editor is correct9 %&': H\$: * 4 \$ vs. H*: * > \$ +eGection region: t > t.\$ ,*\$ 4 *.8*2 Test statistic: t 4 *2.28*2 .onclusion: +eGect the null hypothesis. %ccording to this data, we can infer at the ! significance level that the editor is correct. %s pages increase, selling price of the boo@ increases. )T': * +,-: ',.TI/& *0.#1*0.2

W"##"e Ne#!- C- (er, %t a recent :illie &elson concert, a survey was conducted that as@ed a random sample of 2\$ people their age and how many concerts they have attended since the first of the year. It is suspected that older concert goers tend to go to more of his concerts in one year than younger concert goers. The data and analysis are shown below. %ge &umber of .oncerts %ge &umber of .oncerts 02 0 22 # " 2\$ 2 23 # 0\$ 2 0" 2 2# 2 03 2 0 0 2\$ 2 2 # #8 * 2* * 2 #

28 2

3 2

0#

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## %n ,xcel output follows:

*3 . D:illie &elson .oncert &arrativeE 8etermine the standard error of estimate and describe what this statistic tells you about the modelBs fit. %&': s 4 \$.3#3", and since the sample mean , we would have to admit that the standard error of estimate is not very small. /n the other hand, it is not a large number either. (ecause there is no predefined upper limit on s, it is difficult in this problem to assess the model in this way. ?owever, using other criteria, the fit of the model is reasonable. )T': * +,-: ',.TI/& *0.#1*0.2

*30. D:illie &elson .oncert &arrativeE 8etermine the coefficient of determination and discuss what its value tells you about the two variables. %&': R2 4 \$.02#20, which means that 02.#20! of the variation in number of concerts attended is explained by the variation in age of the attendees. )T': * +,-: ',.TI/& *0.#1*0.2

*3". D:illie &elson .oncert &arrativeE .alculate the )earson correlation coefficient and interpret. %&': r 4 \$.8\$2\$2. It has a positive sign since the slope of the regression line, b*, is positive. This says there is a strong positive linear relationship between age of the concert attendee and the number of concerts they have been to in a year. )T': * +,-: ',.TI/& *0.#1*0.2

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*38. D:illie &elson .oncert &arrativeE .onduct a test of the population coefficient of correlation to determine at the ! significance level whether a positive linear relationship exists between age and number of concerts attended. %&': H\$: 4 \$ vs. H*: > \$ +eGection region: t > t.\$ ,*8 4 *."#2 Test statistic: .onclusion: +eGect the null hypothesis. Les, we can infer that at the ! significance level that a positive linear relationship exists between age and number of concerts attended in one year, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

*33. D:illie &elson .oncert &arrativeE .onduct a test of the population slope to determine at the ! significance level whether a positive linear relationship exists between age and number of concerts attended. %&': H\$: * 4 \$ vs. H*: * > \$ +eGection region: t > t.\$ ,*8 4 *."#2 Test statistic: t 4 .03"* .onclusion: +eGect the null hypothesis. Les, we can infer that at the ! significance level that a positive linear relationship exists between age and number of concerts attended in one year, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

2\$\$. D:illie &elson .oncert &arrativeE 8o the and * tests in the previous two questions provide the same results9 ,xplain. %&': LesF both tests have the same value of the test statistic, the same reGection region, and of course the same conclusion. This is not a coincidenceF the two tests are identical. )T': * +,-: ',.TI/& *0.#1*0.2

O"# 1%a#",2 a d Pr"(e Puality of oil is measured in %)I gravity degrees11the higher the degrees %)I, the higher the quality. The table shown below is produced by an expert in the field who believes that there is a positive relationship between quality and price per barrel.

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/il degrees %)I 2".\$ 28. #\$.8 #*.# #*.3 #2. #2.\$ #2." #".\$ 2*.\$ 2*.\$ #8.8 #3.#

)rice per barrel ;in K< *2.\$2 *2.\$2 *2.#2 *2.2" *2.23 *2."\$ *2.8\$ *#.\$\$ *#.\$\$ *#.*" *#.*3 *#.22 *#.2"

% partial statistical software output follows: De!(r"p,".e S,a,"!,"(! Nariable & 8egrees *# )rice *# C-.ar"a (e! 8egrees )rice 8egrees 2*.28*00" 2.\$20" \$ )rice \$.2\$88## 't8ev \$.280" \$.\$\$822\$ T #2.3* **. 3 ) \$.\$\$\$ \$.\$\$\$ Cean #2.0\$ *2."#\$ 't8ev 2.0*# \$.2 " ', Cean *.28\$ \$.*2"

Re\$re!!"- A a#2!"! )redictor .oef .onstant 3.2#23 8egrees \$.\$3 2# ' 4 \$.*#*2 +'q 4 32.20!

+'q;adG< 4 3*."! '' 2.#*02 \$.*838 2. \$0\$ C' 2.#*02 \$.\$*"# *#2.22 ) \$.\$\$\$

## A a#2!"! -/ 3ar"a (e 'ource 8+egression * +esidual ,rror ** Total *2

2\$*. D/il Puality and )rice &arrativeE 8etermine the standard error of estimate and describe what this statistic tells you. %&': s 4 \$.*#*2. 'ince the sample mean , the standard error of estimate is Gudged to be small, and we may say that the model fits the data well. )T': * +,-: ',.TI/& *0.#1*0.2

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2\$2. D/il Puality and )rice &arrativeE 8etermine the coefficient of determination and discuss what its value tells you about the two variables. %&': R2 4 \$.3220, which means that 32.20! of the variation in the oil price per barrel is explained by the variation in the %)I degrees. )T': * +,-: ',.TI/& *0.#1*0.2

2\$#. D/il Puality and )rice &arrativeE .alculate the )earson correlation coefficient. :hat sign does it have9 :hy9 %&': r 4 \$.30*0. It has a positive sign since the slope of the regression line, b*, is positive. The value of r indicates a strong positive linear relationship between %)I degrees and price of oil per barrel. )T': * +,-: ',.TI/& *0.#1*0.2

2\$2. D/il Puality and )rice &arrativeE .onduct a test of the population coefficient of correlation to determine at the ! significance level whether a positive linear relationship exists between the quality of oil and price per barrel. %&': H\$: 4 \$ vs. H*: > \$ +eGection region: t > t.\$ ,** 4 *."30 Test statistic: .onclusion: +eGect the null hypothesis. Les, we can infer that at the ! significance level that a positive linear relationship exists between the quality of oil and price per barrel. )T': * +,-: ',.TI/& *0.#1*0.2

2\$ . D/il Puality and )rice &arrativeE .onduct a test of the population slope to determine at the ! significance level whether a linear relationship exists between the quality of oil and price per barrel. %&': H\$: * 4 \$ vs. H*: * > \$ +eGection region: t > t.\$ ,** 4 *."30 Test statistic: t 4 **.0* .onclusion: +eGect the null hypothesis. Les, we can infer at the ! significance level that a positive linear relationship exists between the quality of oil and price per barrel, according to this data. )T': * +,-: ',.TI/& *0.#1*0.2

2\$0. D/il Puality and )rice &arrativeE 8o the and * tests in the previous two questions provide the same results9 ,xplain. %&': LesF both tests have the same value of the test statistic ;the small difference between **.0* and **. 3 is due to rounding in Cinitab output<, the same reGection region, and of course the same conclusion. This is not a coincidenceF the two tests are identical.

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)T': *

## +,-: ',.TI/& *0.#1*0.2

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