Business Stat 2

scatter chart

is a graphical presentation of the relationship between two quantitative variables.

Coeffiecient of determination

is a measure of the goodness of fit of the estimated regression equation. It can be interpreted as the proportion of the variability in the dependent variable y that is explained by the estimated regression equation.

F-Test

is used to test the hypothesis that the values of the regression parameters ß1, ß2, ... ßq are all zero.

The difference between the observed value of the dependent variable and the value predicted using the estimated regression equation is known as the

residual

The least squares regression line minimizes the sum of the

squared differences between actual and predicted y values.

Which of the following relationships would have a negative correlation coefficient?

supply and demand

If covariance between two variables is near 0, it implies that

the variables are not linearly related

When the mean value of the dependent variable is independent of variation in the independent variable, the slope of the regression line is

zero