Part A: Multiple Choice (1–11)
______1. Using the “eyeball” method, the regression line = 2+2x has been fitted to the data points (x = 2, y = 1), (x = 3, y = 8), and (x = 4, y = 7). The sum of the squared residuals will be
a. 7b. 19 c. 34d. 8
______2. A computer statistical package has included the following quantities in its output: SST = 50, SSR = 35, and SSE = 15. How much of the variation in y is explained by the regression equation?
a. 49% b. 70%c. 35%d. 15%
______3. In testing the significance of, the null hypothesis is generally that
a. β = b. β 0c. β = 0d. β = r
______4. Testing whether the slope of the population regression line could be zero is equivalent to testing whether the population _____________ could be zero.
a. standard error of estimatec. yintercept
b. prediction intervald. coefficient of correlation
______5. A multiple regression equation includes 4 independent variables, and the coefficient of multiple determination is 0.64. How much of the variation in y is explained by the regression equation?
a. 80%b. 16%c. 32%d. 64%
______6. A multiple regression analysis results in the following values for the sumofsquares terms: SST = 50.0, SSR = 35.0, and SSE = 15.0. The coefficient of multiple determination will be
a. = 0.35b. = 0.30c. = 0.70 d. = 0.50
______7. In testing the overall significance of a multiple regression equation in which there are three independent variables, the null hypothesis is
a. :
b. :
c. :
d. :
______8. In a multiple regression analysis involving 25 data points and 4 independent variables, the sumofsquares terms are calculated as SSR = 120, SSE = 80, and SST = 200. In testing the overall significance of the regression equation, the calculated value of the test statistic will be
a. F = 1.5c. F = 5.5
b. F = 2.5d. F = 7.5
______9. For a set of 15 data points, a computer statistical package has found the multiple regression equation to be = 23 + 20+ 5 + 25 and has listed the tratio for testing the significance of each partial regression coefficient. Using the 0.05 level in testing whether = 20 differs significantly from zero, the critical t values will be
a. t = 1.960 and t= +1.960
b. t = 2.132 and t = +2.132
c. t = 2.201 and t = +2.201
d. t = 1.796 and t = +1.796
______10. Computer analyses typically provide a pValue for each partial regression coefficient. In the case of , this is the probability that
a. = 0
b. =
c. the absolute value of could be this large if = 0
d. the absolute value of could be this large if 1
______11. In the multiple regression equation, = 20,000 + 0.05+ 4500 , is the estimated household income, is the amount of life insurance held by the head of the household, and is a dummy variable ( = 1 if the family owns mutual funds, 0 if it doesn’t). The interpretation of = 4500 is that
a. owing mutual funds increases the estimated income by $4500
b. the average value of a mutual funds portfolio is $4500
c. 45% of the persons in the sample own mutual funds
d. the sample size must have been at least n = 4500
Part B: True or False (1220)
_______ 12. The usual objective of regression analysis is to predict estimate the value of one variable when the value of another variable is known.
_______ 13. Correlation analysis is concerned with measuring the strength of the relationship between two variables.
_______ 14. In the least squares model, the explained sum of squares is always smaller than the regression sum of squares.
_______ 15. The sample correlation coefficient and the sample slope will always have the same sign.
_______ 16. An important relationship in regression analysis is.
_______ 17. If in a regression analysis the explained sum of squares is 75 and the unexplained sum of square is 25, r^{2} = 0.33.
_______ 18. When small values of Y tend to be paired with small values of X, the relationship between X and Y is said to be inverse.
_______ 19. The probability that the test statistic will fall in the critical region, given that H_{0} is true, represents the probability of making a type II error.
_______ 20. When we reject a true null hypothesis, we commit a Type I error.
Part C: Please fill in the blank and circle your decision or answer the following questions (2125).
21. State whether you would reject or fail to reject the null hypothesis in each of the following cases (twotailed): Make a decision.
a)
P = 0.12 ; 
Decision 

Reject / Fail to reject 
b)
P = 0.03 ; 
Decision 

Reject / Fail to reject 
c)
P = 0.001 ; 
Decision 

Reject / Fail to reject 
22. State whether should be accepted or rejected for , given the following; (fill in the blank and circle your decision)
a) = 2.34; df = 2 and 11
Computed F 
Critical F 
Decision 
________ 
________ 
Reject / Fail to reject 
b) = 2.52; df = 4 and 20
Computed F 
Critical F 
Decision 
________ 
________ 
Reject / Fail to reject 
c) = 4.29; df = 3 and 24
Computed F 
Critical F 
Decision 
________ 
________ 
Reject / Fail to reject 
23. Given the following, complete the ANOVA table and make the correct inference. Using Fvalue to make a decision.
Source 
SS 
df 
MS 
F 
Treatments 
_____ 
2 
3.24 
_____ 
Error 
_____ 
17 
_____ 

Total 
40.98 
_____ 







ANSWER 

a) What is the hypothesis being tested in this problem? 


b) In the above ANOVA table, is the factor significant at the 5% level? 


c) What is the number of observations? 

24. Given the following, complete the ANOVA table and make the correct inference. Using Fvalue to make a decision.
Source 
SS 
df 
MS 
F 
Treatments 
____ 
5 
205.5 
____ 
Error 
637 
____ 
____ 

Total 
____ 
25 



ANSWER 
a) What is the hypothesis being tested in this problem? 

b) In the above ANOVA table, is the factor significant at the 5% level? 

c) What is the number of observations? 

25. Given the following, complete the ANOVA table and make the correct inference. Using Fvalue to make a decision.
Source 
SS 
df 
MS 
F 
Treatments 
____ 
3 
____ 
____ 
Error 
88.8 
____ 
____ 

Total 
435 
19 



ANSWER 
a) What is the hypothesis being tested in this problem? 

b) In the above ANOVA table, is the factor significant at the 5% level? 

c) What is the number of observations? 

Part D: Must show all your work step by step in order to receive the full credit; Excel is not allowed. (2638)
26. Consider the following hypothesis test.
H_{o}: µ = 17
H_{a}: µ ≠ 17
A sample of 25 gives a sample mean of 14.2 and sample variance of 25.
a) 
At 5% should the null be rejected? 
b) 
Compute the value of the test statistic 




c) 
What is the pvalue? 
d) 
What is your conclusion? 




27. Consider the following hypothesis test
H_{o}: µ ≥ 10
H_{a}: µ < 10
A sample of 50 provides a sample mean of 9.46 and sample variance of 4.
a) 
At 5% should the null be rejected? 
b) 
Compute the value of the test statistic 




c) 
What is the pvalue? 
d) 
What is your conclusion? 




28. Use problem 13 on page 920 to answer the following questions.
a) What is the sample mean

b) What is the sample standard deviation

c) Use Z or T test? And why?

d) What is your hypothesis test

e) At α = 0.05, what is the rejection rule?

f) Compute the value of the test statistic.

g) What is the pvalue?

h) What is your conclusion?

29. Use problem 7 on page 936 to answer to following questions.
a) 
At 5% should the null be rejected? 
b) 
Compute the value of the test statistic 




c) 
What is the pvalue? 
d) 
What is your conclusion? 




30. For n=6 data point, the following quantities have been calculated.
∑xy = 400 
∑x = 40 
∑y = 76 
∑x^{2} = 346 
∑y^{2} = 1,160 

a)Find

b)Find 

c)Write the equation

d)Find


e)Find SST

f)Find


g) Construct the 95% confidence interval for the mean of y when x = 7

h) Construct the 95% confidence interval for the individual value of y when x = 7 
31. Please fill in the computer printout and answer the following questions. Given that
SUMMARY OUTPUT 





Regression Statistics 





Multiple R 
0.9037 




R Square 
______ 




Adjusted R Square 
______ 




Standard Error 
______ 




Observations 
5 




ANOVA 






df 
SS 
MS 
F 
Significance F 
Regression 
1 
4.9 
______ 
______ 
0.03535 
Residual 
3 
1.1 
______ 


Total 
______ 
______ 




Coefficients 
Standard Error 
t Stat 
Pvalue 
Lower95% 
Upper 95% 
Lower 95.0% 
Upper 95.0% 
Intercept 
0.1 
______ 
0.15746 
0.88488 
2.12112 
1.92112 
2.12112 
1.92112 
X1 
0.7 
______ 
3.65563 
0.03535 
0.09061 
1.30939 
______ 
______ 
a) What percent of the variation is explained by the regression equation?

b) What is the standard error of regression? 
c) What is the critical value of the Fstatistic?

d) What sample size is used in the print out?

32. The following regression equation was obtained using the five independent variables. Given that
a) What percent of the variation is explained by the regression equation

b) What is the standard error of regression?

c) Write the estimated equation.

d) What is the critical value of the Fstatistic? 
e) What sample size is used in the print out?

f) What is the variance of the slope coefficient of income? 
g) Assuming that you are using a twotailed test make a decision using the computed Pvalue.

33. Use problem 5 on page 159 to answer the following questions. (ad)
a) What is you hypothesis testing

b) What is your ?

c) Is the value significant at 5% level of significance?

d) Write the conclusion for this question.

34. Eighty Frat Rats were blindfolded and given a taste test on different brands of beer. The table below shows the beer brands preferred. Test to see if the data fits a uniform distribution (i.e., what would happen if the Frat Rats can’t tell one beer from another). Use 5% level of significance.
Beer Brand 
Number of Preferring that Brand 
Bud Light 
32 
Coors Light 
18 
Molton Golden 
14 
Miller Light 
16 
a) What is you hypothesis testing

b) What is your ?

c) Is the value significant at 5% level of significance?

d) Write the conclusion for this question.

35. Use the computer printout below to answer the following questions.

Coefficients 
Std. Error 
tStat 
Pvalue 
Intercept 
729.8665 
169.25751 
4.3121659 
0.0010099 
Price 
10.887 
3.4952397 
3.1148078 
0.0089406 
Advertising 
0.0465 
0.0176228 
2.6386297 
0.0216284 
ANOVA

df 
SS 
MS 
F 
Significance F 
Regression 
2 
12442.8 
6221.4 
37.56127994 
0.00000683 
Residual 
12 
1987.6 
165.63333 


Total 
14 
14430.4 



S_{e} =12.86986 Rsq = 0.862263 Rsq(adj) = 0.8393068
a) Write and interpret the multiple regression equation

b) Does the model with Price and Advertising contribute to the prediction of Y?

c) Which independent variable appears to be the best predictor of sales? Explain.

d) What is the number of observations used in this study?

e)Find SST Assuming that the coefficient on Advertising has Ha: B1 > 0, what’s statistical decision ?

f) What is the standard error of estimate? Can you use this statistic to assess the model’s fit? If so, how?

g) What is the coefficient of determination, and what does it tell you about the regression model?

h) What is the coefficient of determination, adjusted for degrees of freedom? What do this statistic and the statistic referr to in part (g) tell you about how well this model fits that data.

i) Test the overall utility of the model. What does the pvalue of the test statistic tell you?

36. Explain why a 95% confidence interval estimate for the mean value of y at a particular x is narrower than a 95% confidence interval for an individual y value at the same value of x.
37. If , n=11, and what is ?
38. You are given the following information from fitting a multiple regression with three variables to 30 sample data points:






Test the following hypotheses, Use
a)

b)

a) 