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1. An accountant for a large department store would like to develop a model to p

ID: 3351540 • Letter: 1

Question

1. An accountant for a large department store would like to develop a model to predict the amount of time it takes to process invoices. Data are collected from the 30 working days and the number of invoices processed and completion time (in hours) are used to obtain the following PHStat output. SUMMARY OUTP

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.945

R Square

0.892

Adjusted R Square

0.889

Standard Error

0.334

Observations

30

ANOVA

df

SS

MS

F

Significance F

Regression

1

25.944

25.944

232.220

4.3946E-15

Residual

28

3.128

0.112

Total

29

29.072

Coefficients

Standard Error

t Stat

P-value

Intercept

0.402

0.124

3.256

0.003

Invoices Processed

0.013

0.001

15.239

0.000

The value of the standard error of the estimated regression model is:

Select one:

a. 0.334

b. 0.124

c. 0.101

d. None of these

2. An accountant for a large department store would like to develop a model to predict the amount of time it takes to process invoices. Data are collected from the 30 working days and the number of invoices processed and completion time (in hours) are used to obtain the following PHStat output.

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.945

R Square

0.892

Adjusted R Square

0.889

Standard Error

0.334

Observations

30

ANOVA

df

SS

MS

F

Significance F

Regression

1

25.944

25.944

232.220

4.3946E-15

Residual

28

3.128

0.112

Total

29

29.072

Coefficients

Standard Error

t Stat

P-value

Intercept

0.402

0.124

3.256

0.003

Invoices Processed

0.013

0.001

15.239

0.000

A zero correlation coefficient between a pair of random variables means that there is no linear relationship between the random variables. True or False.

Select one:

True

False

.

UT

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.945

R Square

0.892

Adjusted R Square

0.889

Standard Error

0.334

Observations

30

ANOVA

df

SS

MS

F

Significance F

Regression

1

25.944

25.944

232.220

4.3946E-15

Residual

28

3.128

0.112

Total

29

29.072

Coefficients

Standard Error

t Stat

P-value

Intercept

0.402

0.124

3.256

0.003

Invoices Processed

0.013

0.001

15.239

0.000

Explanation / Answer

Please kindly note that we have given the value of the standard error in sumary output is 0.334

This is The value of the standard error of the estimated regression model.

So a ) 0.334 is correct option.

We know that correlation gives us the strength of relationship between two variables.

The range of r is (1 , -1 ), if r = 1 then we can say that there is perfect positive correlation between two variables, if r = -1 then we can say that there is perfect negative correlation and if r = 0 then there is no linear relationship between two variables.

A zero correlation coefficient between a pair of random variables means that there is no linear relationship between the random variables, so This is TRUE