1. A large school district is reevaluating its teachers’ salaries. They have decided to use regression analysis to predict mean teachers’ salaries at each elementary school. The researcher uses years of experience to predict salary. The resulting regression equation was:

Y = 23,313.22 + 1,210.89X, where Y = salary, X = years of experience

Based on this equation, by how much could a teacher expect his or her salary to increase for every additional tear of service?

A. $1,210.89X

B. $1,210.89

C. $1,210.89 + X

D. $23,313.22

Answer: $1,210.89X

2. A large school district is reevaluating its teachers’ salaries. They have decided to use regression analysis to predict mean teachers’ salaries at each elementary school. The researcher uses years of experience to predict salary. The resulting regression equation was:

Y = 23,313.22 + 1,210.89X, where Y = salary, X = years of experience

Assume a teacher has ten years of experience. What is the forecasted salary?

A. $35,422.12

B. $34,522.12

C. $35,683.48

D. $36,583.48

Answer: $35,422.12

3. A large school district is reevaluating its teachers’ salaries. They have decided to use regression analysis to predict mean teachers’ salaries at each elementary school. The researcher uses years of experience to predict salary. The resulting regression equation was:

Y = 23,313.22 + 1,210.89X, where Y = salary, X = years of experience

Assume a teacher has five years of experience. What is the forecasted salary?

A. $29,337.22

B. $29,337.67

C. $29,367.22

D. $29,367.67

Answer:

Y = 23,313.22 + 1,210.89(5)

Y = 23,313.22 + 6,054.45

Y = 29,367.67

4. The coefficients of each independent variable in a multiple regression model represent slopes.

True

False

Answer: True

5. Which of the following statements is false concerning the hypothesis testing procedure for a regression model?

A. The F-test statistic is used.

B. The null hypothesis is that the true slope coefficient is equal to zero.

C. The null hypothesis is rejected if the adjusted r2 is above the critical value

D. An ? level must be selected.

E. The alternative hypothesis is that the true slope coefficient is not equal to zero.

Answer: The null hypothesis is that the true slope coefficient is equal to zero.

6. A scatter diagram is a graphical depiction of the relationship between the dependent and independent variables.

True

False

Answer: True

7. Time-series models attempt to predict the future by using historical data.

True

False

Answer: True

8. Scatter diagrams can be useful in spotting trends or cycles in data over time.

True

False

Answer:True

9. If computing a causal linear regression model of Y = a + bX and the resultant r2 is very near zero, then one would be able to conclude that:

A. Y = a + bX is a good forecasting method.

B. Y = a + bX is not a good forecasting method.

C. a multiple linear regression model is a good forecasting method for the data.

D. a multiple linear regression model is not a good forecasting method for the data.

Answer: Y = a + bX is a good forecasting method.

10. An air conditioning and heating repair firm conducted a study to determine if the average outside temperature, thickness of the insulation, and age of the heating equipment could be used to predict the electric bill for a home during the winter months in Houston, Texas. The resulting regression equation was:

Y = 256.89 – 1.45X1 – 11.26X2 + 6.10X3, where Y = monthly cost, X1 = average temperature, X2 = insulation thickness, and X3 = age of heating equipment

Assume December has an average temperature of 45 degrees and the heater is 2 years old with insulation that is 6 inches thick.

What is the forecasted monthly electric bill?

A. $111.88

B. $127.72

C. $136.28

D. $205.72

Answer: $136.28

Related answered questions Chapter 01 Taking Risks and Making Profits within the Dynamic Business

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