BUS 204 Week 12 Quiz

BUS 204  Week 12  Quiz | MiraCosta College

Question 1

A dependent variable is the variable that we wish to predict or explain in a regression model.

True  

False

Question 2

When a correlation is found between a pair of variables, this always means that there is a direct cause and effect relationship between the variables.

True  

False

Question 3

Assume that a medical research study found a correlation of -0.73 between consumption of vitamin A and the cancer rate of a particular type of cancer. This could be interpreted to mean:

vitamin A causes this type of cancer.

the less vitamin A consumed, the lower a person's chances are of getting this type of cancer.  

the more vitamin A consumed, the higher a person's chances are of getting this type of cancer.  

the more vitamin A consumed, the lower a person's chances are of getting this type of cancer.

Question 4

A recent study of 15 shoppers showed that the correlation between the time spent in the store and the dollars spent was 0.235. Using a significance level equal to 0.05, which of the following is the appropriate null hypothesis to test whether the population correlation is zero?

H0 : μ = 0.0 

H0 : ρ = 0.0 

H0 : ρ ≠ 0 

H0 : r = 0.0

Question 5

Which of the following statements is true with respect to a simple linear regression model?

If the correlation coefficient between the x and y variables is negative, the sign on the regression slope coefficient will also be negative 

If the correlation between the dependent and the independent variable is determined to be significant, the regression model for y given x will also be significant.

The percent of variation in the dependent variable that is explained by the regression model is equal to the square of the correlation coefficient between the x and y variables.

Question 6

A health insurance company conducted a linear regression analysis between the number of claims per customer (Y) and customer age (X) that resulted in the following equation analyzing customer risk:

  = 2 + 3X

The above equation implies that an:

increase of one year in age is correlated with an increase of 3 claims.  

increase of one year in age is correlated with an increase of 1 claim.  

increase of one year in age is correlated with an increase of 5 claims.  

increase one year in age is correlated with an increase of 30 claims.

Question 7

It is believed that number of people who attend a Mardi Gras parade each year depends on the temperature that day. A regression has been conducted on a sample of years where the temperature ranged from 28 to 64 degrees and the number of people attending ranged from 8400 to 14,600. The regression equation was found to be   = 2378 + 191x. Which of the following is true?

The average change in parade attendance is an additional 2378 people per one-degree increase in temperature.  

If the temperature is 75 degrees, we can expect that 16,703 people will attend.  

The average change in parade attendance is an additional 191 people per one-degree increase in temperature.