Multiple Choice Questions

1. In regression analysis, the model in the form is called

a. regression equation
b. correlation equation
c. estimated regression equation
d. regression model

2. The mathematical equation relating the independent variable to the expected value of the dependent variable; that is, E(y) = 0 +
1x, is known as
a. regression equation
b. correlation equation
c. estimated regression equation
d. regression model

3. The model developed from sample data that has the form of is known as
a. regression equation
b. correlation equation
c. estimated regression equation
d. regression model
4. In regression analysis, the unbiased estimate of the variance is
a. coefficient of correlation
b. coefficient of determination
c. mean square error
d. slope of the regression equation
5. The interval estimate of the mean value of y for a given value of x is
a. prediction interval estimate
b. confidence interval estimate
c. average regression
d. x versus y correlation interval
6. The standard error is the
a. t-statistic squared
b. square root of SSE
c. square root of SST
d. square root of MSE
7. If MSE is known, you can compute the
a. r square
b. coefficient of determination
c. standard error
d. all of these alternatives are correct

8. In regression analysis, which of the following is not a required assumption about the error term ?
a. The expected value of the error term is one.
b. The variance of the error term is the same for all values of X.
c. The values of the error term are independent.
d. The error term is normally distributed.
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9. Larger values of r2 imply that the observations are more closely grouped about the
a. average value of the independent variables
b. average value of the dependent variable
c. least squares line
d. origin
10. In a regression and correlation analysis if r 2 = 1, then
a. SSE must also be equal to one
b. SSE must be equal to zero
c. SSE can be any positive value
d. SSE must be negative
11. In a regression and correlation analysis if r 2 = 1, then
a. SSE = SST
b. SSE = 1
c. SSR = SSE
d. SSR = SST
12. The coefficient of correlation
a. is the square of the coefficient of determination
b. is the square root of the coefficient of determination
c. is the same as r-square
d. can never be negative
13. In regression analysis, if the independent variable is measured in pounds, the dependent variable
a. must also be in pounds
b. must be in some unit of weight
c. cannot be in pounds
d. can be any units

14. A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation

= 50,000 - 8X

The above equation implies that an

a. increase of $1 in price is associated with a decrease of $8 in sales
b. increase of $8 in price is associated with an increase of $8,000 in sales
c. increase of $1 in price is associated with a decrease of $42,000 in sales
d. increase of $1 in price is associated with a decrease of $8000 in sales

15. Regression analysis was applied between sales (in $1000) and advertising (in $100) and the following regression function was
obtained.

= 500 + 4 X

Based on the above estimated regression line if advertising is $10,000, then the point estimate for sales (in dollars) is
a. $900
b. $900,000
c. $40,500
d. $505,000
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Short Essay Questions

1. The weight and systolic blood pressure of 13 randomly selected males aged between 25 and 30 are
shown below. Assume that the first-order regression model is appropriate.

Systolic
Weight (Kg)
BP

165 130

167 133
180 150

155 128
212 151

175 146

190 150

210 140

200 148
149 125

158 133
169 135

170 150

(a) Compute the point estimates of and and state the estimated regression function that relates
systolic blood pressure to weight.
(5 marks)

(b) Estimate the correlation coefficient. Explain the meaning of this coefficient.
(3 marks)

(c) Test whether a linear relationship exists between systolic blood pressure and weight. Use
(4 marks)
(d) Compute the coefficient of determination. Explain its meaning.
(3 marks)

(e) Obtain a 95% confidence interval for mean systolic blood pressure for males with a weight of 100 Kg.
Is this interval valid? Explain.
(5 marks)
2. A random sample of 64 cities was selected from a country and the relationship between the
percentage of educated residents (X) and the crime rate (per 100000 residents) (Y) is to be studied.
(f) A least squares regression is used to fit the model and the following result was
obtained:
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,

(g) Portray graphically the response function for this model.

(3 marks)
(h) Given that and the root mean square error is 2356.3, test whether or not there is a
regression relation. Use
(6 marks)
(i) Predict the crime rate if the percentage of educated residents is 74%.
(2 marks)
(j) Given that and the average percentage of educated residents is 78%. Compute a 95%
confidence interval for mean crime rate if the percentage of educated residents is 74%.
(4 marks)

3. An experiment was conducted to determine the influence of acid bath temperature on an appropriate
measure of the witness of rayon. The experimental results follow.

Whiteness Acid Bath

Level Temperature
76.5 35
76 35
79.9 35
89.4 55
97.5 55
103.2 55
80.2 25
89.1 65
77.2 45
85.1 45
71.5 45

A simple linear regression was employed to the data and yield the following results.
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(a) Discuss about the appropriateness of the model based on the above output.
(6 marks)

(b) Perform the appropriate test for Lack of Fit. Use

(10 marks)

(c) Based on your findings in (a) and (b), do you think a first order regression model is appropriate to
relate acid temperature to whiteness level of rayon? If not, suggest a more appropriate model.
(4 marks)
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4. The following data shows the amount of precipitation produced (Y) and the amount of solution used
(X) in an experiment.

Y X Residual
0.07 9 0.41
0.09 9 0.43
0.08 9 0.42
0.16 7 -0.15
0.17 7 -0.14
0.21 7 -0.10
0.49 5 -0.47
0.58 5 -0.38
0.53 5 -0.43
1.22 3 -0.38
1.15 3 -0.45
1.07 3 -0.53
2.84 1 0.59
2.57 1 0.32
3.1 1 0.85

A simple linear regression is fitted to the data and yields the following results.
Analysis of Variance
Sum of Mean
Source DF Squares Square F Value Pr > F
Model 1 12.59712 12.59712 55.99 <.0001
Error 13 2.92465 0.22497
Corrected Total 14 15.52177

Parameter Estimates
Parameter Standard
Variable DF Estimate Error t Value Pr > |t|
Intercept 1 2.57533 0.24873 10.35 <.0001
X 1 -0.32400 0.04330 -7.48 <.0001
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(d) Discuss about the appropriateness of the model based on the above output.
(6 marks)

(e) Conduct the Brown Forsythe test and determine the consistency of error variance at 5% significance
level. Divide the dataset into two groups with in one group and to be in the other group.
(9 marks)