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Chapter 6

PLEASE DO NOT WRITE ON THIS

PAPER!!!!!!
1. The correlation of U.S. stock returns with overseas stock returns during these years was
r = 0.44. This tells you that
(a) when U.S. stocks rose, overseas stocks also tended to rise, but the connection was not
very strong
(b) when U.S. stocks rose, overseas stocks rose by almost exactly the same amount
(c) when U.S. stocks rose, overseas stocks tended to fall, but the connection was not very
strong
(d) there is almost no relationship between changes in U.S. stocks and changes in
overseas stocks
(e) nothing, because this is not a possible value of r
2. If x is the return on U.S. stocks and y is the return on overseas stocks in the same year, the
least-squares regression line for predicting y from x is y = -2.7 + 0.47x. You think U.S. stocks will
have a return of 10% in 1999. Using this regression line, you predict that the return on overseas
stocks will be
(a) 7.4%
(b) -2.23%
(c) 2%
(d) 3.17%
3. Suppose that the correlation between the scores of students on Exam 1 and Exam 2 in a
statistics class is r = 0.8. One way to interpret r is to say what percent of the variation in Exam 2
scores can be explained by the straight line relationship between Exam 2 scores and Exam 1
scores. This percent is about
(a) 80%
(b) 20%
(c) 64%
(d) 8%
4. What can we say about the relationship between a correlation r and the slope b of the leastsquares line for the same set of data?
(a) r is always larger than b
(b) r and b always have the same sign (+ or
-)
(c) b is always larger than r
(d) b and r are measured in the same units
How well does the number of beers a student drinks predict his or her blood alcohol content?
Sixteen student volunteers at Ohio State University drank a randomly assigned number of cans
of beer. Thirty minutes later, a police officer measured their blood alcohol content (BAC). A
scatterplot of the data appears below.

5. One student drank 9 beers. You see from the scatterplot that his BAC was about
(a) 0.19
(b) 9
(c) 19
(d) 0.05
6. The scatterplot shows on the previous page shows
(a) a weak negative relationship
(b) a moderately strong negative relationship
(c) almost no relationship
(d) a weak positive relationship
(e) a moderately strong positive straight-line relationship between number of beers and
BAC.
7. A plausible value of the correlation between number of beers and blood alcohol content, based
on the scatterplot, is
(a) r = -0.9
(b) r = -0.3
(c) r close to 0
(d) r = 0.3
(e) r
= 0.9
8. The least-squares regression line for predicting blood alcohol content from number of beers
is y = -0.013 + 0.018x. The slope 0.018 of this line tells us that
(a) the correlation between number of beers and BAC is 0.018
(b) on the average, BAC increases by 0.018 for each additional beer a student drinks
(c) a student who drinks no beer will still have a BAC of 0.018
(d) the average BAC of all the students in the study was 0.018
9. The least-squares regression line for predicting blood alcohol content from number of beers
is y = -0.013 + 0.018x. Using this line, you predict that the BAC of a student who drinks 5 beers
will be about
(a) 0.025
(b) 0.077
(c) 0.09
(d) 0.103
10. We want to use scores on Exam 1 to predict final total score in a course. Last semester,
students with higher Exam 1 scores did tend to get higher total scores. But regressing total score
on Exam 1 score explained only 36% of the total score. What is the correlation between Exam 1
scores and total scores?
(a) 0.36

(b) -0.36

(c) 0.60

(d) -0.60

(e) 0.72

Free Response:
In order to determine whether studying for final exams is really a good idea, you collect some
data on the number of hours past
students spent studying for the exam
Study
Exam
and their score on the exam.
Hours
Score
11. What should be used as the
variable? Why?
12. Use the data provided to draw
13. Do you predict that there will
Will it be high
or low? Why?
14. Calculate the least squares
calculator. What
is the equation of the line?

3
5
2
6
7
1
2
7
1
7

80
90
75
80
90
50
65
85
40
100

explanatory variable? Response

a neat, labeled scatterplot.


be a positive or negative correlation?

regression line using your graphing


What is r? r2?

15. Use the least squares regression line to predict your score if you were to study
for 4 hours.
16. Interpret the slope and the y-intercept of the least squares regression line.
17. Use the r2 value to make a statement explaining what percent of the observed variation in
exam score is explained
by the amount of hours studied.