What percent of the variation is explained by the variable, number of rooms? A. .901 B. .812 C. .451 D. .949 42) Smith's Appliances is evaluating its advertising budget. The owner is trying to decide if the budget needs to be altered or not. The question: Is there a positive return on the investment that is being made in advertising? What is the relationship between sales and the amount spent on advertising? The owner collected data for the past year by month. The data is in millions of dollars. Month Advertising Expense Sales Revenue January 2 4 February 3 5 March 3 6 April 5 8 May 6 8 June 4 7 July 5 7 August 6 8 September 7 9 October 8 10 November 10 13 December 9 11 Is there a relationship between the two variables? What is the coefficient of correlation for this data? A. Yes, 0.961 B. Yes, 0.892 C. Yes, 0.980 D. No, 0.457 43) The least squares regression equation is Y' = 1312 + 245X. When X = 5, what does Y' equal? A. 2357 B. 1557 C. 4,050 D. 2537 44) When an insurance company is going to write a new home owner policy, one concern is the distance between the house and the nearest fire department station. This is one factor that goes in to determining the cost of the insurance for the home owner. ETB Insurance Company wants to determine if there is a relationship between the distance to a fire station and the amount of fire damage to a house. A random sample of 50 claims was selected for analysis. The correlation coefficient was 0.78. Which is the correct interpretation and recommendation? A. There is not a strong enough relationship so as to be able to use distance to a firehouse as a factor in determining insurance rates.
Res 342 final exam pack 5 final exams & test bank all questions solved
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