A regression analysis between sales (y in $1000) and advertising (x in dollars) resulted in the following equation: = 50,000 + 6x The above equation implies that an increase of _____.
A regression analysis between sales (in $1000s) and price (in dollars) resulted in the following equation: = 50,000 − 8x The above equation implies that an increase of _____.
$1 in price is associated with a decrease of $8,000 in sales
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183 Refer to Exhibit 15-5. The estimated regression equation is _____.
= 145.321 + 25.625x1 - 5.720x2 + 0.823x3
The correct relationship between SST, SSR, and SSE is given by _____.
SSR = SST - SSE
In regression analysis, which of the following is NOT a required assumption about the error term ε?
The values of the error term are dependent.
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183 Refer to Exhibit 15-5. The interpretation of the coefficient on x1 is that _____.
a one-unit change in x1 will lead to a 25.625-unit increase in y when all other variables are held constant
Exhibit 15-5Below is a partial Excel output based on a sample of 25 observations. Coefficients Standard Error Intercept 145.321 48.682 x1 25.625 9.150 x2 -5.720 3.575 x3 0.823 0.183 Refer to Exhibit 15-5. The interpretation of the coefficient onx1is that _____.
a one-unit change in x1 will lead to a 25.625-unit increase in y when all other variables are held constant
The difference between the observed value of the dependent variable and the value predicted by using the estimated regression equation is called _____.
a residual
In simple linear regression, r2 is the _____.
coefficient of determination
The proportion of the variation in the dependent variable y that is explained by the estimated regression equation is measured by the _____.
coefficient of determination
The interval estimate of the mean value of y for a given value of x is the _____.
confidence interval
A measure of the strength of the relationship between two variables is the _____.
correlation coefficient
In regression analysis, the response variable is the _____.
dependent variable
In regression analysis, the variable that is being predicted is the _____.
dependent variable
Exhibit 15-4 a.y = β0 + β1x1 + β2x2 + εb.E(y) = β0 + β1x1c. = b0 + b1 x1 + b2 x2d.E(y) = β0 + β1x1 + β2x2 Refer to Exhibit 15-4. Which equation gives the estimated regression line?
equation c
A multiple regression model has the form = 7 + 2 x1 + 9 x2 As x1 increases by 1 unit (holding x2 constant), is expected to _____.
increase by 2 units
SSE can never be _____.
larger than SST
Larger values of r2 imply that the observations are more closely grouped about the
least squares line
Larger values of r2 imply that the observations are more closely grouped about the _____.
least squares line
A least squares regression line _____.
may be used to predict a value of y if the corresponding x value is given
A multiple regression model has _____.
more than one independent variable
If the correlation coefficient is a positive value, then the slope of the regression line
must also be positive
Compared to the prediction interval estimate for a particular value of y (in a linear regression model), the confidence interval estimate for an average value of y will be _____.
narrower
Application of the least squares method results in values of the y-intercept and the slope that minimizes the sum of the squared deviations between the _____.
observed values of the dependent variable and the predicted values of the dependent variable
Regression analysis is a statistical procedure for developing a mathematical equation that describes how _____.
one dependent and one or more independent variables are related
A procedure used for finding the equation of a straight line that provides the best approximation for the relationship between the independent and dependent variables is _____.
the least squares method
The equation that describes how the dependent variable (y) is related to the independent variable (x) is called _____.
the regression model
In a simple regression analysis (where y is a dependent and x an independent variable), if the slope is positive, then it must be true that _____.
there is a positive correlation between x and y
If there is a very strong negative correlation between two variables, then the correlation coefficient must be _____.
very close to -1
In regression analysis, the independent variable is typically plotted on the _____.
x-axis of a scatter diagram
In regression analysis, the independent variable is typically plotted on the _____. Group of answer choices
x-axis of a scatter diagram
