Question 10

You work for a company in the marketing department. Your manager has tasked you with forecasting sales by month for the next year. You notice that over the past 12 months sales have consistently gone up in a linear fashion, so you decide to run a regression the company's sales history. You find that the regression equation for the data is (sales) = 62.128*(time) + 193.623. In August (time = 8) you see the actual sales quantity was 308.178. The residual is -382.469. Interpret this residual in terms of the problem.

Question 10 options:

1)The month is 382.469 months larger than what we would expect.

2)The sales is 382.469 units greater than what we would expect.

3)The month is 382.469 months less than what we would expect.

4)The sales is 382.469 units less than what we would expect.

5)The sales is 308.178 units less than what we would expect.

Question 6

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Suppose that for a typical FedEx package delivery, the cost of the shipment is a function of the weight of the package measured in ounces. You want to try to predict the cost of a typical shipment given package dimensions. If 10 packages in a city are sampled and the regression output is given below, report the regression equation.

Question 6 options:

1)

(cost of delivery) = 0.144*(weight)

2)

(weight) = 10.446*(cost of delivery) + 0.144

3)

(cost of delivery) = 0.144*(weight) + 10.446

4)

(weight) = 0.144*(cost of delivery) + 10.446

5)

(cost of delivery) = 10.446*(weight) + 0.144

Question 7

While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.295*(age) + 2.625. If a customer is 54 years old, how many claims would you expect them to make in a given year?

Question 7 options:

1)

18.55

2)

We do not know the observations in the data set, so we cannot answer that question.

3)

174.15

4)

142.04

5)

15.93

Question 8

While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (number of claims per year) = 2.003*(age) + 3.515. Interpret the slope.

Question 8 options:

1)

We are not given the dataset, so we cannot make an interpretation.

2)

When number of claims per year increases by 1 claim, age increases by 2.003 years.

3)

When age increases by 1 year, number of claims per year increases by 2.003 claims per year.

4)

When age increases by 1 year, number of claims per year increases by 3.515 claims per year.

5)

When number of claims per year increases by 1 claim, age increases by 3.515 years.

Predictor Constant weight = 3.224 R-sqadj} = 4.94% Analysis of variance SOURCE Regression Error Total