a.) Theresultsof the simple linear regression are provided below:

Estimated Bank's charges = -700 + 20Sales revenue.

Interpret the estimated intercept

Select one:

a.All companies will be charged at least $700 by the bank.

b.About 95% of the observed service charges fall within $700 of the least squares line.

c.There is no practical interpretation since a sales revenue of $0 is a nonsensical value.

d.For every $1 increase in sales revenue, we expect a service charge to decrease $700.

b.)The t distribution

Select one:

a.assumes the population is not normally distributed and approaches the normal distribution as the sample size decreases.

b.assumes the population is not normally distributed.

c.None of these given options.

d.approaches the normal distribution as the sample size decreases.

c.)What is residuals (error) sum of square

Select one:

a.difference between observed value and mean value of Y

b.difference between observed value and estimated value of Y

c.None of the given options are correct

d.difference between estimated value of Y and mean value of Y

Clear my choice

d.)Which is not true for error term epsilon()?

Select one:

a.The error epsilon()is a random variable with mean of one.

b.The error epsilon()is a normally distributed random variable

c.The values of epsilon()are independent.

d.The variance of epsilon(), denoted by sigma square, is the same for all values of the independent variables.

e.)Which of the following is more appropriate about the Student's t distribution?

Select one:

a.It is used to construct confidence intervals for the population mean when the population standard deviation is known.

b.It is bell shaped and symmetrical.

c.It has more area in the tails and less in the center than does the normal distribution and it is bell shaped and symmetrical.

d.It has more area in the tails and less in the center than does the normal distribution.

f.)You use 20 observations and two independent variables and find R squared=0.800, what would be your adjusted R squared

Select one:

a.0.800

b.0.796

c.0.776

d.0.766

i.)Adding independent variables with the model

Select one:

a.increase the sum of squares due to error (SSE).

b.reduce the sum of squares due to error (SSE).

c.no effect on the sum of squares due to error (SSE).

d.the sum of squares due to error (SSE) may increase or decrease.

j.)Adjusted R squared in multiple regression

Select one:

a.Is always negative

b.Can be positive or negative

c.can be more than 1.

d.Is always positive

k.)For a given level of significance (Alpha), if the sample size n is decreased, the probability of a Type II error (beta)

Select one:

a.will increase.

b.will remain the same.

c.cannot be determined.

d.will decrease.

l.)If R square=0.852, what is the correct interpretation of R square

Select one:

a.85.2% of the variability in x has been explained by the estimated regression equation.

b.85.2% of the variability in y has been explained by the estimated regression equation.

c.0.852% of the variability in y has been explained by the estimated regression equation.

d.0.852 of the variability in x has been explained by the estimated regression equation.

m.)If R-squared = 0.962. Correlation coefficient would be

Select one:

a.0.9254

b.0.8161

c.0.9062

d.0.9808

n.)One student wants to compare the prices of various identical electronic gadgets with two suppliers, DIY and Tesco. Student suspects that DIY is overcharging. What would be null and alternative hypothesis student should test:

Select one:

a.Ho:ud< 0;Ha:ud> 0;drepresent the price difference between DIY and Tesco

b.Ho:ud0;Ha:ud< 0;drepresent the price difference between DIY and Tesco

c.Ho:ud=0;Ha:ud0;drepresent the price difference between DIY and Tesco

d.Ho:ud 0;Ha:ud> 0;drepresent the price difference between DIY and Tesco

o.)State the null hypothesis,H0, and the alternative hypothesis, Ha of the following statement: 'At most 65% of students pay attention in the face to face class'.

Select one:

a.H0: u0.65; Ha: u<0.65

b.H0: p0.65; Ha: p>0.65

c.H0: u0.65; Ha: u>0.65

d.H0: p0.65; Ha: p<0.65

p.)Suppose you want to test H0:u 46 and Ha:u> 46. What will result if we conclude that the mean is greater than 46 when its true value is really 51?

Select one:

a.We have made a correct decision.

b.We have made a Type I error.

c.None of the above is correct.

d.We have made a Type II error.

q.)The least squares criterion is to

Select one:

a.Minimize total sum of square (SST)

b.Minimize sum of square due to regression (SSR)

c.All of the given options

d.Minimize sum of square due to error (SSE)