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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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