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Reading 11: Correlation and Regression - LOS h: Q5-8

Q5. What is the lower limit of a 95% confidence interval for the predicted value of company sales (Y) given industry sales of $3,300?

A)   827.80.

B)   1,337.06.

C)   778.47.

Q6. What is the t-statistic for the slope of the regression line?

A)   2.9600.

B)   3.1820.

C)   7.7025.

Q7. A variable y is regressed against a single variable x across 28 observations. The value of the slope is 1.89, and the constant is 1.1. The mean value of x is 1.50, and the mean value of y is 3.94. The standard deviation of the x variable is 0.96, and the standard deviation of the y variable is 2.85. The regression sum of squares is 79.07, and the total sum of squares is 195.24. For an x value of 2.0, what is the 95% confidence interval for the y value?

A)   1.21 to 8.65.

B)   1.01 to 8.75.

C)   0.41 to 9.35.

Q8. Paul Frank is an analyst for the retail industry. He is examining the role of television viewing by teenagers on the sales of accessory stores. He gathered data and estimated the following regression of sales (in millions of dollars) on the number of hours watched by teenagers (TV, in hours per week):

Salest = 1.05 + 1.6 TVt

The predicted sales if television watching is 5 hours per week is:

A)    $2.65 million.

B)    $8.00 million.

C)    $9.05 million.

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