Refer to the scatter plot above, which represent the relationship between unit p

Question

Refer to the scatter plot above, which represent the relationship between unit price of a certain product and quantity sold at various price levels. Which of the following would NOT be true for the regression resulting from the data in the plot above? a. R^2 close to 100% b. R close to 1 c. s_y-x close to 0 d. All of the above would be true e. None of the above (a-c) would be true. Refer to the scatter plot above, which represents the relationship between unit price of a certain product and quantity sold at various price levels. If computed, the sign of the slope (b) in the equation would be: a. Either positive or negative b. Positive c. Negative d. None of the above Refer to the scatter plot above, which represents the relationship between unit price of a certain product and quantity sold at various price levels. The solid line in the plot represents: a. The actual Y values b. The residual values c. The actual X values d. The estimated Y values e. None of the above Refer to the scatter plot above, which represents the relationship between unit price of a certain product and quantity sold at various price levels. The equation for the line going through the points would take the form of: a. Y = a + bX b. Y = a - bX c. Y = x - 1 d. Y = a + bX^2 e. None of these is correct Refer to the scatter plot above, which represents the relationship between unit price of a certain product and quantity sold at various price levels. Around what percentage of the variation in quantity sold can be explained by the price per unit at which the product is sold? a. Close to zero b. Close to 100 percent c. Close to -100 percent

Explanation / Answer

6. From the plot we clearly see that, as X increases, Y decreases, and from the regression line we see that, slope of the line is negative, i.e if X increases, Y decreases. So, R which is the correlation between X and Y, must be negative. R can't be close to 1.

So the answer is (b)

7. From the same logic above, as R is definitely negative, slope of the regression line, i.e sign of slope of the equation must be negative.

So the answer is (c)

8. The estimated Y values will be obtained by the regression line, so the solid line of the plot represent the estimated Y values.

So the answer is (d)

9. As the slope of the equation is negative, so the equation of the line would take the form is Y=a-bX

So the answer is (b)

10. From the graph of the (X,Y) values, it looks like X and Y are almost linearly related and the relation is inversely related, so R2 is close to 1, so the percentage of the variation in quantity ssold can be explained by the proce per unit at which the product is sold is R2, so it is close to 100%.

So the answer is (b)

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