Question

 

1. The following sample observations were randomly selected (numbers may be different from previous problems):

X	Y
4	4
5	6
3	5
6	7
10	7

What is the predicted value of Y when X=7?

Select one:

a. 7.47

b. 26.73

c. -22.53

d. 6.31

2. A business is evaluating their advertising budget, and wishes to determine the relationship between advertising dollars spent and changes in revenue. They have compiled the information in the table below, and want to perform regression.

Weekly Revenue ($k)	TV Advertising ($k)	Radio Advertising ($k)	Newspaper Advertising ($k)
96	5.0	1.5	1.0
90	2.0	2.0	0.8
95	4.0	1.5	0.9
92	2.5	2.5	0.5
95	3.0	3.3	1.2
94	3.5	2.3	1.0
93	2.5	4.2	0.9
94	3.0	2.5	0.9

What is the independent data?

Select one:

a. Weekly Revenue

b. TV Advertising

c. Radio Advertising

d. Newspaper Advertising

e. All Advertising

3. The following sample observations were randomly selected (numbers may be different from previous problems):

X	Y
5	4
10	7
3	7
4	6
6	5

What is the y-intercept of the regression equation?

Select one:

a. 3.38

b. 7.00

c. 5.80

d. 5.30

Answer 1

1) Answer: d) 6.31

Explanation:

The regression equation is:

Y=3.7671 + 0.3630x

The prediction value of Y when X=7 is:

Y=3.7671 + 0.3630(7) = 6.31

2) Answer: e) All Advertising

3) Answer: d) 5.30