STAT741 Regression Analysis: Quiz #1

This quiz is open book and open notes! It is due at 9pm, Wednesday, 1/31.
Multiple Choice Questions. Choose the correct answer for the following questions:

1. Which of the following statements are true?

A. The simplest deterministic mathematical relationship between two variables x and y is a linear
relationship y = β0 + β1 x
B. The set of pairs (x, y) for which y = β0 + β1 x determines a straight line with slope β1 and y-
intercept β 0 .
C. The slope of a line y = β0 + β1 x is the change in y per a 1-unit increase in x.
D. The y-intercept of a line y = β0 + β1 x is the height at which the line crosses the vertical axis
and is obtained by setting x = 0 in the equation.
E. All of the above statements are true.

2. Which of the following statements are not true if y = −3 x + 7 ?

A. The y-intercept is 7
B. y decreases by 3 when x increases by 4
C. y decreases by 3 when x increases by 1
D. The slope of the line is -3
E. All of the above statements are not true.

3. Which of the following statements are true?

A. The true regression line y = β0 + β1 x is the line of mean values.

B. The height of the true regression line y = β0 + β1 x above any particular x value is the
expected value of Y for that value of x.
C. The slope β1 of the true regression line y = β0 + β1 x is interpreted as the expected change in
Y associated with a 1-unit increase in the value of x.
D. The equation σ Y2⋅ x∗ = V (β0 + β1 x∗ + ε ) states that the amount of variability in the distribution
of Y values is the same at each different value of x (homogeneity of variance).
E. All of the above statements are true.

4. A procedure used to estimate the regression parameters β1 and β 2, and to find the least squares
line which provides the best approximation for the relationship between the explanatory variable x
and the response variable Y is known as the

A. least squares method

B. best squares method
C. regression analysis method
D. coefficient of determination method
E. prediction analysis method

5. The principle of least squares results in values of βˆ0 and βˆ1 that minimizes the sum of squared
deviations between

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 A. the observed values of the explanatory variable x and the estimated values x̂
B. the observed values of the response variable y and the estimated values ŷ
C. the observed values of the explanatory variable x and the response variable y
D. the observed values of the explanatory variable x and the response values ŷ
E. the estimated values of the explanatory variable x and the observed values of the response
variable y

2
6. If ∑(x − x )( y − y ) = 128 and ∑( x − x )
i i i = 80, then the least squares estimate of the slope
coefficient β1 of the true regression line y = β0 + β1 x is

A. 11.314
B. 8.944
C. 1.600
D. 0.625
E. cannot be determined from the given information

7. If ∑x i=15, ∑ yi = 36, ∑ xi yi = 210, ∑ xi2 = 30, and n = 20, then the least squares estimate of
the slope coefficient β1 of the true regression line y = β0 + β1 x is

A. 18.75
B. 28.42
C. 9.15
D. 9.76
E. 10.50

8. Which of the following statements are true?

A. Before the least squares estimates βˆ1 and βˆ2 are computed, a scatter plot should be
examined to see whether a linear probabilistic model is plausible.
B. For a fixed x value x∗ , βˆ0 + βˆ1 x∗ (the height of the estimated regression line above x∗ ) gives
either a point estimate of the expected value of Y when x = x∗ or a point prediction of the Y
value that will result from a single new observation made at x = x∗ .
C. The least squares regression line should not be used to make a prediction for an x value much
beyond the range of the data x values.
D. The residuals are the vertical deviations y1 − yˆ1 , y2 − yˆ2 ,K K , yn − yˆ n from the estimated
regression line.
E. All of the above statements are true.

9. The quantity ε in the simple linear regression model Y = β0 + β1 x + ε is a random variable,

assumed to be normally distributed with E (ε ) = 0 and V (ε ) = σ 2 . Based on 20 observations, if
the residual sum of squares is 8, then the estimated standard deviation σˆ is

A. 2.500
B. 0.400
C. 0.667
D. 0.444
E. None of the above answers are correct.
 Simple Linear Regression and Correlation

10. If the error sum of squares is 12 and the total sum of squares is 400, then the proportion of
observed y variation explained by the simple linear regression model is

A. 0.030
B. 0.173
C. 0.970
D. 0.985
E. None of the above answers are correct.

11. Which of the following statements are not correct?

A. The coefficient of determination, denoted by R2 is interpreted as the proportion of observed y

variation that cannot be explained by the simple linear regression model.
B. The higher the value of the coefficient of determination, the more successful is the simple
linear regression model in explaining y variation.
C. If the coefficient of determination is small, an analyst will usually want to search for an
alternative model (either a nonlinear model or a multiple regression model that involves more
than a single independent variable).
D. The coefficient of determination can be calculated as the ratio of the regression sum of
squares (SSR) to the total sum of squares.
E. All of the above statements are correct.

12. The quantity ε in the simple linear regression model Y = β0 + β1 x + ε is a random variable,
assumed to be normally distributed with E (ε ) = 0 and V (ε ) = σ 2 . The estimated standard
deviation σˆ is given by

A. SSE / (n – 2)
B. SSE /(n − 2)
C. [ SSE /(n − 2)]2
D. SSE / n − 2
E. SSE /(n − 2)

13. In testing H 0. : β1 = 0 versus H a : β1 ≠ 0, using a sample of 20 observations, the rejection region

for .01 level of significance test is

A. t ≥ -2.878
B. t ≤ 2.878
C. -2.878 ≤ t ≤ 2.878
D. either t ≥ 2.878 or t ≤ -2.878
E. t=0

14. In testing H0 : β1 = 0 versus H a : β1 ≠ 0, using a sample of 22 observations, the test statistic value
is found to be t = -2.528. the approximated P-value of the test is

A. .01
B. .02
C. .025
D. .05
E. .99

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