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Reading 11: Correlation and Regression - LOS h: Q2-4

Q2. Which of the following reports the correct value and interpretation of the R2 for this regression? The R2 is:

A)   0.048, indicating that the variability of industry sales explains about 4.8% of the variability of company sales.

B)   0.952, indicating that the variability of industry sales explains about 95.2% of the variability of company sales.

C)   0.952, indicating the variability of company sales explains about 95.2% of the variability of industry sales.

Q3. What is the predicted value for sales of Company XYZ given industry sales of $3,500?

A)   $994.88.

B)   $900.00.

C)   $883.72.

Q4. What is the upper limit of a 95% confidence interval for the predicted value of company sales (Y) given industry sales of $3,300?

A)   877.13.

B)   827.87.

C)   318.42.

dd

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bc

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THX

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thx

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thanks

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re

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thanks

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thanks

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z

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