- StudyBlue
- North Carolina
- University of North Carolina-Wilmington
- Statistics
- Statistics 280
- Ravija Badarinathi
- Ch. 10

Jessie S.

In regression analysis, the variable that is being predicted is

the dependent variable

In regression analysis, the variable that is doing the predicting or explaining is

the independent variable

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The coefficient of determination is

the correlation coefficient squared

The value of the coefficient of determination ranges between

0 to +1

The coefficient of correlation

is the sq. rt of the coefficient of determination

The range of the correlation coefficient is

-1 to +1

In a regression and correlation analysis if r2 = 1, then

SSR=SST

Regression analysis was applied between demand for a product (Y) and the price of the product (X), and the following estimated regression equation was obtained.

= 120 - 10 X

Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to

= 120 - 10 X

Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to

decrease by 20 units

In regression analysis if the dependent variable is measured in dollars, the independent variable

can be any units

If the coefficient of determination is 0.9, the percentage of variation in the dependent variable explained by the variation in the independent variable

is 90%

If the coefficient of correlation is a positive value, then

the slope of the line must be positive

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Regression analysis was applied between sales (Y in $1,000) and advertising (X in $100), and the following estimated regression equation was obtained.

= 80 + 6.2 X

Based on the above estimated regression line, if advertising is $10,000, then the point estimate for sales (in dollars) is

= 80 + 6.2 X

Based on the above estimated regression line, if advertising is $10,000, then the point estimate for sales (in dollars) is

$700,000

In a regression and correlation analysis if r2 = 1, then

SSE must be equal to zero

In regression and correlation analysis, if SSE and SST are known, then with this information the

coefficient of determination can be computed

If all the points of a scatter diagram lie on the least squares regression line, then the coefficient of determination for these variables based on this data is

1

A regression analysis between sales (in $1000) and price (in dollars) resulted in the following equation

= 50,000 - 8X

The above equation implies that an

= 50,000 - 8X

The above equation implies that an

increase of $1 in price is associated with a decrease of $8000 in sales

Regression analysis was applied between sales (in $10,000) and advertising (in $100) and the following regression function was obtained.

= 50 + 8 X

Based on the above estimated regression line if advertising is $1,000, then the point estimate for sales (in dollars) is

= 50 + 8 X

Based on the above estimated regression line if advertising is $1,000, then the point estimate for sales (in dollars) is

$1,300,000

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