1.) Suppose that in a certain city, the rent of an apartment is proportional to
ID: 3367495 • Letter: 1
Question
1.) Suppose that in a certain city, the rent of an apartment is proportional to the size of the apartment in square feet. You use regression to try to quantify this relationship and the regression output from a sample of 10 apartments is shown below. Report the regression equation.
a.) (cost) = 0.142*(size) + 392.42
b.) (cost) = 0.142*(size)
c.) (size) = 0.142*(cost) + 392.42
d.) (cost) = 392.42*(size) + 0.142
e.) (size) = 392.42*(cost) + 0.142
2.) Suppose that for a typical FedEx package delivery, the cost of the shipment is a function of the weight of the package measured in ounces. You want to try to predict the cost of a typical shipment given package dimensions. If 10 packages in a city are sampled and the regression output is given below, report the regression equation
b.) (cost of delivery) = 0.293*(weight) + 0.512
c.) (cost of delivery) = 0.512*(weight) + 0.293
d.) (cost of delivery) = 0.512*(weight)
e.) (weight) = 0.512*(cost of delivery) + 0.293
3.) While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. After performing a regression, they find that the relationship is (claims per year) = 0.257*(age) + 9.665. If a customer is 54.134 years old, how many claims would you expect them to make in a given year?
a.) 173.03
b.) 523.46
c.) 23.58
d.) We do not know the observations in the data set, so we cannot answer that question.
e.) 13.91
4.) Suppose that for a typical FedEx package delivery, the cost of the shipment is a function of the weight of the package. You find out that the regression equation for this relationship is (cost of delivery) = 1.698*(weight) + 2.121. If a package you want to ship weighs 35.125 ounces, what would you expect to pay for the shipment?
a.) 19.44
b.)59.64
c.) We do not know the observations in the data set, so we cannot answer that question.
d.) 76.2
e.)61.76
5.)Suppose that for a typical FedEx package delivery, the cost of the shipment is a function of the weight of the package. You find out that the regression equation for this relationship is (cost of delivery) = 0.866*(weight) + 6.068. If a package you want to ship weighs 28.789 ounces and the true cost of the shipment is $10.431, what is the residual?
a.) -2.21
b.) -18.358
c.) -20.568
d.) 20.568
e.) 18.358
6.) You work for a company in the marketing department. Your manager has tasked you with forecasting sales by month for the next year. You notice that over the past 12 months sales have consistently gone up in a linear fashion, so you decide to run a regression the company's sales history. You find that the regression equation for the data is (sales) = 27.675*(time) + 11.342. Interpret the slope.
a.) We are not given the dataset, so we cannot make an interpretation.
b.) When sales increases by 1 unit, time increases by 11.342 months.
c.) When time increases by 1 month, sales increases by 27.675 units.
d.) When sales increases by 1 unit, time increases by 27.675 months.
e.) When time increases by 1 month, sales increases by 11.342 units.
7.) While attempting to measure its risk exposure for the upcoming year, an insurance company notices a trend between the age of a customer and the number of claims per year. It appears that the number of claims keep going up as customers age. If 10 customers are sampled and the regression output is given below, what can we conclude about the slope of age?
b.) The slope is 0.006 and therefore differs from 0.
c.) The slope is equal to 0.
d.) The slope significantly differs from 0.
e.) Since we are not given the dataset, we do not have enough information to determine if the slope differs from 0.
8.) Suppose that a researcher wants to predict the weight of female college athletes based on their height and percent body fat. A sample is taken and the following regression table is produced. What is the regression equation?
b.) (weight) = 3.088*(height) + 0.928*(percent body fat) + 3.096
c.) (weight) = 3.088*(percent body fat) + 0.928*(height) + 3.096
d.) (weight) = 3.088*(height) + 0.928*(percent body fat)
e.) (weight) = 0.163*(height) + 0.305*(percent body fat) + 3.096
Predictor Constant size Coef 392.42 0.142 Stdev 172.0798 0.178 t-ratio 2.28 0.052 0.4495 R-sq 7.32% R-sq (adj ) --4 . 268 = s = 10 . 573 Analysis of Variance SOURCE Regression Error Total DE MS 70.7 894.3 965 1 70.7 0.63 0.4495Explanation / Answer
1. Correct answer: option (A) (cost) = 0.142*(size) + 392.42
2. Correct answer: Option (C) (cost of delivery) = 0.512*(weight) + 0.293
3. Year = 0.257*54.134 +9.665 = 23.58
Correct answer: Option (C)
4.(cost of delivery) = 1.698*35.125+2.121 = 61.76
Correct answer: Option (E)
5. (cost of delivery) = 0.866*28.789 + 6.068 = 30.99928
Residual = 10.431 -30.99928 = -20.568
Correct answer: Option (C)
6. Correct answer: option c.) When time increases by 1 month, sales increases by 27.675 units.
7. Correct answer: Option (C) The slope is equal to 0.
since P-value of Slope = 0.8669 > alpha 0.05 so slope is not significant
8.Correct answer: Option (b.) (weight) = 3.088*(height) + 0.928*(percent body fat) + 3.096
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