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The correct answer is A

The slope represents the change in the dependent variable for a one-unit change in the independent variable. If the value of X is zero, the value of Y will be equal to the intercept, in this case, 0.78.


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3、Paul Frank is an analyst for the retail industry. He is examining the role of television viewing by teenagers on the sales of accessory stores. He gathered data and estimated the following regression of sales (in millions of dollars) on the number of hours watched by teenagers (in hours per week):

Salest = 1.05 + 1.6 TVt

Which of the following is the most accurate interpretation of the estimated results? If TV watching:

A) goes up by one hour per week, sales of accessories increase by $1.60.

B) goes up by one hour per week, sales of accessories increase by $1.6 million.

C) changes, no change in sales is expected.

D) is zero (that is, every teenager turns off the TV for a week), the expected sales of accessories is $0.

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The correct answer is B

In the scatter plot, higher values of the return on stock A are associated with higher values of the return on the market, i.e. a positive correlation between the two variables.


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3、In the scatter plot below, the correlation between the return on stock A and the market index is:

 

  1.gif

A)    negative.

B)    positive.

C)   zero.

D)   not discernable using the scatter plot.


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2、If the correlation between two variables is ?1.0, the scatter plot would appear along a:

A) straight line running from southwest to northeast.

B) a curved line centered in the scatter plot. 

C) a curved line running from southwest to northeast. 

D) straight line running from northwest to southeast.

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The correct answer is D

If the correlation is ?1.0, then higher values of the y-variable will be associated with lower values of the x-variable. The points would lie on a straight line running from northwest to southeast.

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The correct answer is C

A scatter plot is a collection of points on a graph where each point represents the values of two variables. They are used to examine the relationship between two variables.

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AIM 2: Define and interpret the results of a scattegram.

1、Which of the following statements regarding scatter plots is most accurate? Scatter plots:

A) are used to examine the third moment of a distribution (skewness).

B) are used to examine the fourth moment of a distribution (kurtosis).

C) illustrate the relationship between two variables.

D) illustrate the scatterings of a single variable.

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5、A regression analysis has the goal of:

A) measuring how the properties of the variables regress towards each other.

B) estimating how changes in independent variables affect a dependent variable.

C) estimating how changes in dependent variable affect an independent variable.

D) measuring the tendency of both independent and dependent variables to regress towards their respective means.

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The correct answer is B

A regression analysis has the goal of measuring how changes in one variable, called a dependent or explained variable, can be explained by changes in one or more other variables called the independent or explanatory variables.

 

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