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Reading 11: Correlation and Regression - LOS f, (Part 2):

Q11. Which of the following is the CORRECT value of the correlation coefficient between aggregate revenue and advertising expenditure?

A)      0.9500.

B)      0.7780.

C)      0.6053.

Q12. Which of the following reports the CORRECT value and interpretation of the R2 for this regression? The R2 is:

A)   0.3947 indicating that the variability of advertising expenditure explains about 39.47% of the variability of aggregate revenue.

B)   0.6053 indicating that the variability of advertising expenditure explains about 60.53% of the variability in aggregate revenue.

C)   0.6053 indicating that the variability of aggregate revenue explains about 60.53% of the variability in advertising expenditure.

Q13. What is the y-intercept term, b0?

A)   47.6712.

B)   34.7400.

C)   92.2840.

Q14. What is the calculated F-statistic?

A)     12.2700.

B)     0.1250.

C)     92.2840.

答案和详解如下:

Q11. Which of the following is the CORRECT value of the correlation coefficient between aggregate revenue and advertising expenditure?

A)      0.9500.

B)      0.7780.

C)      0.6053.

Correct answer is B)

The R2 = (SST - SSE)/SST = RSS/SST = (20,922.5 - 8,257.374) / 20,922.5 = 0.6053.

The correlation coefficient is the square root of the R2 in a simple linear regression which is the square root of 0.6053 = 0.7780.

Q12. Which of the following reports the CORRECT value and interpretation of the R2 for this regression? The R2 is:

A)   0.3947 indicating that the variability of advertising expenditure explains about 39.47% of the variability of aggregate revenue.

B)   0.6053 indicating that the variability of advertising expenditure explains about 60.53% of the variability in aggregate revenue.

C)   0.6053 indicating that the variability of aggregate revenue explains about 60.53% of the variability in advertising expenditure.

Correct answer is B)

The R2 = (SST - SSE)/SST = (20,922.5 - 8,257.374) / 20,922.5 = 0.6053.

The interpretation of this R2 is that 60.53% of the variation in aggregate revenue (Y) is explained by the variation in advertising expenditure (X).

Q13. What is the y-intercept term, b0?

A)   47.6712.

B)   34.7400.

C)   92.2840.

Correct answer is A)

The mean of the aggregate revenue (Y) is 3,645/10 = 364.50 and of the advertising expenditure (X) is 91.2/10 = 9.12. The y-intercept, b0 = MeanY – Slope × MeanX = 364.50 – 34.74 × 9.12 = 47.6712.

Q14. What is the calculated F-statistic?

A)     12.2700.

B)     0.1250.

C)     92.2840.

Correct answer is A)

The computed value of the F-Statistic = MSR/MSE = 12,665.12576 / 1,032.17178 = 12.27, where MSR and MSE are from the ANOVA table.

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