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In a regression analysis, the estimated regression equation is given by y = 12 -

ID: 3356506 • Letter: I

Question

In a regression analysis, the estimated regression equation is given by y = 12 - 6x. If SSE = 510 and SST = 1000, then the sample correlation coefficient is: -0.7

a.) How do you get the answer -0.7?

If a data set has SSR = 400 and SSE = 100, then the coefficient of determination is: .80

b.) How do you get the answer .80?

In a regression analysis the standard error is determined to be 4. In this situation the MSE: is 16

c) How do you get the answer 16?

Regression analysis was applied between sales (in $10,000) and advertising (in $100) and the following regression function was obtained.
y= 50 + 8 X Based on the above estimated regression line if advertising is $1,000, then the point estimate for sales (in dollars): is $1,300,000

d.) How do you get the answer 1,300,000?

Explanation / Answer

a.) How do you get the answer -0.7?

first we calculate rsquare as = (1000-510)/1000 = 0.49 , sqrt of 0.49 is r

sqrt(0.49) = 0.7 , negative sign because the regression shows anegative relationship between x and y so -0.7

If a data set has SSR = 400 and SSE = 100, then the coefficient of determination is: .80

b.) How do you get the answer .80?

we know that Rsquare = SSR/SST = 400/(400+100) = 0.8

In a regression analysis the standard error is determined to be 4. In this situation the MSE: is 16

c) How do you get the answer 16?

SE = 4

Regression analysis was applied between sales (in $10,000) and advertising (in $100) and the following regression function was obtained.
y= 50 + 8 X Based on the above estimated regression line if advertising is $1,000, then the point estimate for sales (in dollars): is $1,300,000

d.) How do you get the answer 1,300,000?

put x = 1000 in

y= 50 + 8*X =  50 + 8*1000= 8050

Its not given which variable is Y and which is X , but you simply need to the relevant value of advertising to get the value of sales

Hope this helps !!

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