Question
C1. A regression has been performed using data from n = 28 companies. The dependent variable was Y (annual change in earning per share, in
C1. A regression has been performed using data from n = 28 companies. The dependent variable was Y (annual change in earning per share, in percent terms), and the independent variable was X (annual change in workforce, also in percent terms). For these data, percents are given as numbers like 12.2, rather than 0.122.
For each of the following 10 questions, indicate whether the situation described could happen or whether the situation is impossible.
The responses should be "CH" or "I.".
__________ (a) The data base shows a correlation of -0.10 between Y and X.
__________ (b) The regression slope is -0.18 and the correlation is 0.38 between Y and X.
__________ (c) The correlation is -0.20 and R2 = 0.04.
__________ (d) The standard deviation of Y is 4.80, and the standard error of estimate is 4.86.
__________ (e) The fitted regression equation is Y = -2.20 + 0.60 X.
__________ (f) Each of Y and X has a negative standard deviation, but their correlation is still positive.
__________ (g) The t statistic for slope is 4.88, and the F test for the regression has the value 5.20.
__________ (h) The F test for the regression has the value -2.55.
__________ (i) The regression is dominated by one firm which experienced a very large growth. When that firm is eliminated (reducing the sample
size to 27), the value of R2 decreases.
__________ (j) The average Y exceeds the average X.
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