MBB.IntroProb13.

ch03sec1-4

TRUE/FALSE

1. If the correlation coefficient , then all the data points lie exactly on a straight line.

ANS: T PTS: 1

2. The correlation coefficient r is a number that indicates the direction and the strength of the
relationship between the dependent variable y and the independent variable x.

ANS: T PTS: 1

3. If the correlation coefficient , then there is no linear relationship whatsoever between the
dependent variable y and the independent variable x.

ANS: T PTS: 1

4. A perfect straight line sloping upward would produce a covariance value of +1.

ANS: T PTS: 1

5. A perfect straight line sloping downward would produce a covariance value of –1.

ANS: T PTS: 1

6. The standard deviation is a measure of the linear relationship between two quantitative
variables.

ANS: F PTS: 1

7. Generally speaking, if two quantitative variables are unrelated, the covariance will be a
positive or negative number close to zero.

ANS: T PTS: 1

8. The best fitting line relating the dependent variable y to the independent variable x, often
called the regression or least-squares line, is found by minimizing the sum of the squared
differences between the data points and the line itself.

ANS: T PTS: 1

9. The scatterplot is a graph that is used to graphically represent the relationship between two
quantitative variables.

ANS: T PTS: 1

10. When constructing a scatterplot, the independent variable (x) is placed on the horizontal axis,
and the dependent variable (y) is placed on the vertical axis.

ANS: T PTS: 1
 11. A scatterplot is not particularly useful in determining if the relationship between the
independent and dependent variables is not linear.

ANS: F PTS: 1

12. If the linear relationship between the dependent and independent variables is positive, the
scatterplot will show the data points on the (x, y) plane generally moving from the lower left
corner to the upper right corner.

ANS: T PTS: 1

13. If the correlation coefficient between the independent variable x and the dependent variable y
is 0.87, then the best fitting line would have a slope equal to 0.87.

ANS: F PTS: 1

14. If two variables have a correlation coefficient equal to 0.005, this means that there is no
relationship between the two variables.

ANS: F PTS: 1

15. A perfect correlation between two variables will always produce a correlation coefficient of
+1.0.

ANS: F PTS: 1

MULTIPLE CHOICE

1. Which of the following are measures of the linear relationship between two variables?

a. the covariance
b. the correlation coefficient
c. the variance
d. both the covariance and the correlation coefficient
e. both the correlation coefficient and the variance
ANS: D PTS: 1

2. Generally speaking, if two variables are unrelated (as one increases, the other shows no
pattern), the covariance will be:

a. a large positive number

b. a large negative number
c. a positive or negative number close to zero
d. a positive or negative number close to 100
e. none of these
ANS: C PTS: 1

3. Given the least squares regression line y = 3.8 – 2x,

 a. the relationship between x and y is positive
b. the relationship between x and y is negative
c. there is no linear relationship between x and y
d. as x decreases, so does y
e. as x increases, so does y
ANS: B PTS: 1

4. Given that = 400, = 625, = 350, and n = 10, the correlation coefficient is:

a. 0.70
b. 0.56
c. 0.875
d. 0.156
e. 0.141
ANS: A PTS: 1

5. If a regression line has a y-intercept of 6.75 and a slope of 1.25, then when x = 2 the actual
value of y is:

a. 9.25
b. 8.75
c. 2.25
d. 1.45
e. unknown
ANS: E PTS: 1

6. A perfect straight line sloping downward would produce a correlation coefficient equal to:

a. +1
b. –1
c. +2
d. –2
e. 0
ANS: B PTS: 1

7. If all the points in a scatterplot lie on the least squares regression line, then the correlation
coefficient r must be:

a. 1.0
b. –1.0
c. either 1.0 or –1.0
d. 100
e. 10
ANS: C PTS: 1
 8. A manager of a supermarket wishes to show the relationship between the number of
customers who come to the store on weekends, and the total volume of sales (in dollars)
during the same weekend. Which of the following graphs would likely be most useful if the
manager has a sample of 52 weekends worth of data?

a. bar chart
b. pie chart
c. box and whisker plot
d. scatterplot
e. histogram
ANS: D PTS: 1

9. Given that = 100, = 64, = 60, and n = 8, the slope of the best-fitting regression line is:

a. 0.75
b. 0.64
c. 0.60
d. 7.5
e. 6.4
ANS: C PTS: 1

10. The best-fitting regression line can be used to:

a. find the actual value of y for a given value of x

b. estimate or predict the value of y for a given value of x
c. calculate the correlation coefficient
d. all of these
e. none of these
ANS: B PTS: 1

11. Which value of the correlation coefficient r indicates a stronger correlation than 0.72?

a. 0.65
b. –0.75
c. 0.60
d. –0.70
e. 0.55
ANS: B PTS: 1

12. A scatterplot can be used to determine the relationship between:

a. two qualitative variables

b. two quantitative variables
c. one qualitative variable and one quantitative variable
d. all of these
e. none of these
ANS: B PTS: 1
 13. In constructing a scatterplot, it would not be appropriate to:

a. label the x axis

b. label the y axis
c. label the graph using titles
d. connect the data points on the graphs with straight lines
e. draw the best fitting line on the graph
ANS: D PTS: 1

PROBLEM

1. A councilman was interested in determining whether people between the ages of 18 and 30
years of age will react to a piece of legislation differently than people over 30 years of age.
The legislator polled a sample of 150 people from his district. The resulting data is shown in
the table below:

Construct a side-by-side bar chart.

Construct a pie chart for the 18 - 30 age group.

Construct a pie chart for the Over 30 age group.

Which of the two types of presentations in parts (a) and (b) is more easily understood?

______________

ANS:

;
 ;

;
Pie chart

PTS: 1

2. Male and female respondents to a questionnaire about gender differences are categorized into
three groups according to their answers as shown below:

Create a side-by-side bar chart to describe these data.

Create two pie charts (one for men and one for women) to describe these data.

Men:

Women:

Which of the charts created above best depicts the difference or similarity of the responses of
men and women.

______________

ANS:
 ;

;
Pie charts

PTS: 1

3. A law school administrator was interested in whether a student's score on the entrance exam
can be used to predict a student's grade point average (GPA) after one year of law school. The
administrator took a random sample of 15 students and computed the following summary
information, where x = entrance exam score and y = GPA after one year:

and
 Find the correlation between the entrance exam score and the grade point average after one
year of law school.

______________

Interpret the correlation coefficient found in part (a).

____________________________

Find the best fitting line relating grade point average after on year of law school and score on
the entrance exam.

y = ______________

If a student scored 91 on the entrance exam, what would you predict the student's grade point
average to be after one year of law school?

______________

ANS:
0.934; There is a positive relationship; -1.6575 + 0.0568x; 3.5113

PTS: 1

4. When the price of gasoline gets high, consumers become very concerned about the gas
mileage obtained by their cars. One consumer was interested in the relationship between car
engine size (number of cylinders) and gas mileage (miles/gallon). The consumer took a
random sample of 7 cars and recorded the following information:

and

Would you expect the correlation between engine size and gas mileage to be positive or
negative?

______________

Find the correlation between engine size and gas mileage.

______________
 Find the best fitting line relating car engine size and gas mileage.

y = ______________

What would you predict the gas mileage to be for a car with 6-cylinder engine size?

______________ mpg

ANS:
Negative; -0.731; 34.405 - 2.5844x; 18.899

PTS: 1

5. The manager of a movie rental store was interested in examining the relationship between the
weekly take-home pay for a family and the amount that family spends weekly on recreational
activities. The following output was generated using Minitab:

Covariances

Let x = weekly take-home pay, and y = amount spent weekly on recreational activities.

a. Identify the covariance between x and y.

______________

b. Identify the variance of weekly take-home pay.

______________

c. Identify the variance of amount spent weekly on recreational activities.

______________

d. Calculate the correlation between weekly take-home pay and amount spent weekly on
recreational activities.

______________
 e. Interpret the correlation coefficient found in part (d).

____________________________

ANS:
2419.64; 4413.84; 1364.29; 0.986; There is a positive relationship

PTS: 1

6. A soft drink distributor was interested in examining the relationship between the number of
ads (x) for his product during prime time on a local television station and the number of sales
per week (y) in thousands of cases. He compiled the figures for 20 weeks and computed the
following summary information:

and

Find the correlation coefficient for the number of ads during prime time and weekly sales.

______________

Find the best-fitting line relating the number of ads during prime time and weekly sales.

y = ______________

If the soft drink distributor ran 21 TV ads per week for his product, what would you predict
his sales to be?

______________ thousand cases

ANS:
0.908; 0.1256 + 1.8966x; 39.9542

PTS: 1

7. The number of household members, x and the amount spent on groceries per week, y (rounded
to the nearest dollar) are measured for eight households in the Big Rapids area. The data are
shown below:
Create a raw scatterplot of these eight data points (no regression line or equation).

Find the best-fitting regression line for these data.

y = ______________

Plot the points and the best-fitting line on the same graph.

What would you estimate a household of seven to spend on groceries per week?

______________

Should you use the fitted line to estimate this amount?

______________

Why or why not?

________________________________________________________

ANS:

;
0.1681 + 25.546x;
 ;
178.99; No; It is risky to try to estimate the value of y for a value of x outside the
experimental region - that is, the range of x values for which you have collected data.

PTS: 1