Exam Stat 2-4 Practice

State whether you believe the two variables are correlated. If you believe they are correlated, state whether the
correlation is positive or negative.
1) Rate of pedaling a bicycle and speed of the bicycle
2) The number of hours one sleeps and the number of hours one is awake
3) The time it takes to read a book and the width of the book
4) Time spent rollerblading and distance covered

5) Select the best estimate of the correlation coefficient for the data depicted in the scatter diagram.

A) 0.20

B) 0.65

C) -0.65

D) 0.95

6) Select the best estimate of the correlation coefficient for the data depicted in the scatter diagram.

A) 0.9

B) -0.1

C) -0.6

D) 0.6

Solve the problem.

7) The following table gives the total sales (revenue) and profits for 8 retailers. Construct a scatter diagram for the
data and state whether sales and profits for these companies have no correlation, a positive correlation, or a
negative correlation.
Total Sales
Profits
Company (Millions of $) (Millions of $)
Adams
9.5
0.5
Browns
22.0
1.4
Clay
35.0
1.8
Donners
64.0
3.0
Esters
27.5
0.9
Framer
45.0
2.6
Gillies
15.0
0.8
Hays
57.0
2.2

8) The table below shows the legal costs and the profits of a company from 2000 to 2005. Construct a scatter
diagram for the data and state whether legal costs and profits for this company have no correlation, a positive
correlation, or a negative correlation for this period.
Legal Costs
Profits
Year (Millions of $)
(Millions of $)
2000
2
9
2001
7
6
2002
5
8
2003
4
7
2004
8
2
2005
3
8

State whether there is no correlation, a positive correlation, or a negative correlation between the x and y variables. If
there is a correlation, state whether it is most likely due to coincidence, a common underlying cause, or a direct cause.
9)

For a group of students in a statistics class, the scatter diagram compares their test scores (y) and the
number of red shirts they have(x).

10)

For a group of employees at the local video store, the scatter diagram compares the number of days worked per
year (y) and the average number of stairs climbedweekly (x).
Provide an appropriate response.
11) Estimate the coordinates of the outlier on the graph.

12) How does the outlier affect the correlation coefficient?.

13) Write the coordinates of a point that would be an outlier on the following graph.

14) Construct a scatter diagram with two groups of data, correlations within each group, but no correlation among
all the data.

15) The following scatterplot shows a relationship between x and y that results in a correlation coefficient of r = 0.
Explain why r = 0 in this situation even though there appears to be a strong relationship between the x and y
variables.

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

A sales manager is interested in determining the relationship between the amount spent on advertising and total sales. The
manager collects data for the past 24 months and runs a regression of sales on advertising expenditures. The results are
presented below but, unfortunately, some values identified by asterisks are missing.

16) What are the degrees of freedom for residuals?

A) 24
B) 22

C) 23

D) 21

17) What is the value of mean square error?

A) 1,493.6
B) 1,554.2

C) 1678.9

D) 1,407.3

18) What are the total degrees of freedom?

A) 24
B) 23

C) 21

D) 22

19) What is the value of residual sum of squares?

A) 10,130.5
B) 10,945.2

C) 36,935.8

D) 11,759.9

20) What is the value of total sum of squares?

A) 46,538.7
B) 50,292.4

C) 48,745.2

D) 52,644.8

21) What is the regression coefficient of y-intercept?

A) 112.4
B) 105.5

C) 108.6

D) 102.3

22) A regression analysis between sales (in $1000) and advertising (in $100) resulted in the following least squares
^

line: y = 75 + 5x. This implies that if advertising is $800, then the predicted amount of sales (in dollars) is:
A) $4075
B) $79,000
C) $64,000
D) $115,000
23) Use the following regression results to answer the question below.
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

0.8851
0.7835
0.7474
5.4006
8

ANOVA
Regression
Residual
Total

Intercept
Total Bill

df
1
6
7

SS
633.242
175.000
808.242

Coefficients
5.93118
-2.71551

MS
633.242
29.167

F
21.711

Standard Error
4.17721
0.58279

t Stat
1.41989
-4.65952

P-value
0.20545
0.00347

Which of the following is true?

A) The correlation between x and y must be approximately -0.8851.
B) The correlation between x and y must be approximately 0.8851.
C) The correlation between x and y must be approximately 0.7835.
D) The correlation between x and y must be approximately -0.7835.

24) Use the following regression results to answer the question below.
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

0.8851
0.7835
0.7474
5.4006
8

ANOVA
Regression
Residual
Total

Intercept
Total Bill

df
1
6
7

SS
633.242
175.000
808.242

Coefficients
5.93118
-2.71551

MS
633.242
29.167

F
21.711

Standard Error
4.17721
0.58279

t Stat
1.41989
-4.65952

P-value
0.20545
0.00347

Which of the following is true?

A) y explains about 88.5 percent of the variation in x.
B) x explains about 88.5 percent of the variation in y.
C) y explains about 78.4 percent of the variation in x.
D) x explains about 78.4 percent of the variation in y.
25) Use the following regression results to answer the question below.
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

0.8851
0.7835
0.7474
5.4006
8

ANOVA
Regression
Residual
Total

Intercept
Total Bill

df
1
6
7

SS
633.242
175.000
808.242

Coefficients
5.93118
-2.71551

MS
633.242
29.167

F
21.711

Standard Error
4.17721
0.58279

t Stat
1.41989
-4.65952

How many observations were involved in this regression?

A) 10
B) 9

P-value
0.20545
0.00347

C) 7

D) 8

Answer Key
Testname: STAT 2-4 PRACTICE

1)
2)
3)
4)
5)
6)
7)

Positive correlation
Negative correlation
Not correlated
Positive correlation
B
C
Positive correlation

8) Negative correlation

Profits (millions of dollars)

y
18
16
14
12
10
8
6
4
2
2 4

8 10 12 14 16 18

Costs (millions of dollars)

9) Negative correlation; coincidence

10) Positive correlation; common underlying cause
11) (9, 17)
12) The outlier reduces the correlation coefficient.
13) (15, 0)
14)

15) The correlation measures the direction and strength of a linear association between two variables. This relationship is
strong but not linear so the correlation is zero.
16) B
17) C
7

Answer Key
Testname: STAT 2-4 PRACTICE

18) B
19) C
20) C
21) B
22) D
23) A
24) D
25) D