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ID: 3072637 • Letter: A

Question

ath: ×D https:/ xD https: X" Q How t x-W 2018.: × G Home x-G chew × 10. Answer True or False for the following statements. If false, justify what would make the statement true. a. If the least-squares equation relating the independent variable x and the dependent variable y for a given problem is y = 2r+5, then an increase of 1 unit in x is associated with an increase of2 units in y b. If your computed correlation coefficient is r- +1.2, then you have better than a perfect positive c. A student might expect that there is a positive correlation between the age of his or her computer correlation. and its resale value. d. In simple regression analysis, if the slope of the line is positive, then there is a positive correlation between the dependent variable y and the independent variable x If there is no correlation between the independent and dependent variables, then the value of the correlation coefficient must be -1. e.

Explanation / Answer

a) True as the slope of equation is 2 so an increase in one unit of independent variable causes increase in 2*1 unit in dependent variable

(b) False correlation coefficient can never be greater than +1 because it lies between-1 and +1

(c) false as the things get older their prices decreases so there should be negative correlation between age and resale value of computer

(d) true because slope is of the form rsigy/sigx so sigy and sigx remains always positive so slope sign depends only on r so if -ve then it have negative correlation

(e) False if there is no correlation between dependent and independent variable then r should be zero not -1 ,-1 represent strong opposite relation between independent n dependent variable